oil

Oil prices dropped today, on apprehensions over negative demand growth from China; however, predictions of a third straight drop in weekly US crude inventories restricted any further fall in prices.

Brent crude declined by 29 cents to $108.80 a barrel, while US oil slipped by 11 cents to $106.21, reported Reuters.

On Tuesday, the Asian Development Bank (ADB) reduced its growth forecasts for developing Asia in 2013 and beyond, as a weak outlook for China has indicated slow economic activity elsewhere in the region.

A survey conducted by Reuters showed that US commercial crude stocks dropped by two million barrels on average for the week ending 12 July.

The Energy Information Administration (EIA) has released data, which showed that any drop will add to a 20-million-barrel fall in US crude inventories.

In the US, economic data reveals that US retail sales have increased by less than anticipated in June, while factory activity in the state of New York jumped in July.

Oil prices received some support from the constant supply disruption worries in the Middle East.

On Monday, police fired tear gas at protesters in Cairo, who were demanding for Egypt’s Islamist president Mohamed Mursi to be reinstated.


Image: Negative demand concerns from China have pulled down oil prices. Photo courtesy of freedigitalphotos.

Energy