Oil extends losses with the keep-going weak demand outlook
Oil prices fell on Tuesday as dismal economic data from China, the largest buyer of crude, rekindled fears of a global recession.
Brent crude futures were down 73 cents, or 0.8%, to $94.37 a barrel as of 0313 GMT. West Texas Intermediate (WTI) crude futures fell 44 cents, or 0.5%, to $88.97 a barrel.
Oil futures were down nearly 3% in the previous session.
China unexpectedly lowered key interest rates as economic data was disappointing.
China's central bank cut lending rates to stimulate demand as the economy unexpectedly slowed in July, factory and retail activity squeezed by Beijing's zero-COVID policy and a real estate crisis.
Commodity prices are generally under pressure as China's economic data for July paints a more pessimistic growth picture than previously expected, which raises new concerns about the demand outlook.
China's fuel product exports are expected to hit a one-year high in August after Beijing announced more quotas, putting pressure on already cooling refinery margins.
Investors are also watching talks to revive the 2015 Iran nuclear deal. Analysts are confident that more oil could enter the market if Iran and the US accept a proposal from the European Union to lift sanctions on Iran's oil exports.
An EU official said Iran responded to the European Union's 2015 "final" draft text on Monday but did not elaborate on Iran's response to the text. Iran's foreign minister urged the United States to show flexibility to resolve the remaining three issues.
The U.S. Energy Information Administration (EIA) said in its productivity report Monday that total production in major U.S. shale oil fields will rise to 9,049 million barrels in September, the highest since March 2020.
Market participants are waiting for API data on US oil inventories, which will be released on Tuesday at 4:30 p.m. Oil and gasoline stocks fell last week, while distillate stocks rose, according to a preliminary survey on Monday.
The premium for front-month WTI futures over six-month barrel loading remained at $3.46 a barrel on Tuesday, it is the lowest in four months and indicates easing tightness in fast supply.
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