After failed attempt on the life of Republican presidential candidate Donald Trump, oil saw ups and downs, and further weak economic data from China increased pressure on Beijing to instill confidence ahead of a significant policy meeting this week.
West Texas Intermediate was above $82, while Brent was trading close to $85 a barrel. Investors increased their bets that the former president would retake the White House in response to the attack, which supported the dollar and put pressure on treasuries and added uncertainty to the US election contest.
Throughout the first half of the year, China’s hunger for raw materials, especially crude, has decreased, creating concerns about demand. The GDP growth of the country dropped to its lowest level in five quarters. The expansion of the world’s oil consumption is being hampered by China’s slowdown, the International Energy Agency has warned.
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Lately, headline fluctuations in oil prices have been dull; one measure of volatility dropped to its lowest point since 2015. Nevertheless, other indicators have changed dramatically. Key timespreads, which serve as a barometer of the state of the market, surged last week, suggesting a shortage of supplies.
According to Harry Tchilinguirian, group head of research at Onyx Capital Group, “oil has multiple cross-currents to navigate, with macro drivers, including poor Chinese economic data and higher US yields proving the more prominent factors in preventing a short term progression higher in oil prices.
” This week’s Third Plenum of the Chinese Communist Party, which will establish the country’s broad economic and political priorities, will be attentively observed for any indications regarding the growth trajectory of the biggest petroleum importer in the world.