Oil steadied on Tuesday near its lowest levels since early June as worries about demand in China were balanced by a government pledge of policy measures for the economy and the prospect of lower U.S. crude and product inventories.
Disappointing economic news from China, the world’s largest crude importer, has been weighing on commodity prices, with manufacturing activity likely shrinking for a third month in July. Brent crude slipped by 16 cents, or 0.2%, to $79.62 a barrel, while U.S. crude was down 11 cents at $75.70. Macroeconomic factors continue to shape investor sentiment, particularly sluggish growth and falling crude oil imports in China.
Despite pledges from Chinese leaders to support the economy, expectations for significant measures remain limited. Additionally, OPEC+ ministers are set to meet to review the market, with no major changes expected in output cuts. A recent drop in oil prices was also influenced by geopolitical tensions in the Middle East and political developments in Venezuela, which could tighten U.S. sanctions and impact global supply.