Oil prices fall on weak economic data

Oil prices fell above $2 on Tuesday after disappointing economic data from top crude buyer China renewed fears of a global recession and as the market still awaited clarity on talks to renew a deal to allow more oil exports from Iran. Brent crude was down $2.47 at $92.63 a barrel by 15:50 GMT, having previously risen to $95.95. U.S. crude futures were down $2.60 at $86.81 a barrel, after earlier hitting $90.65. Both major contracts fell about three percent in the previous session. As the economy unexpectedly slowed in July due to Beijing’s strict zero-covid policy and a real estate crisis, factory activity and retail sales contracted, China’s central bank cut lending interest rates to revive demand. “All commodity prices are under pressure as China’s economic data for July paints a more pessimistic picture of growth than previously expected, leading to renewed concerns about the outlook for demand,” said Yip Junrong, market expert at IG Group. In a letter.” Investors are closely watching negotiations to renew the 2015 Iran nuclear deal. More oil could enter the market if Iran and the U.S. accept an EU proposal to lift sanctions on Iranian oil exports, analysts said. The market is awaiting data on U.S. crude inventories, due today from the American Petroleum Institute. A preliminary poll by Reuters showed U.S. oil and gasoline stocks were likely to fall last week, while distillate stocks rose.