Oil Prices Slip as Weak US Consumer Demand Precedes China Data Release

Oil Prices Decline Amid Weak U.S. Demand and Anticipation of China's Economic Data

Oil prices saw a decline during early Asian trading on Monday, influenced by a recent survey indicating weaker U.S. consumer demand and as traders awaited crucial economic data from China, the world's largest crude importer. Global benchmark Brent crude futures decreased by 15 cents, or 0.18%, reaching $82.47 per barrel as of 0034 GMT. Similarly, U.S. West Texas Intermediate (WTI) crude futures fell by 16 cents, or 0.2%, settling at $78.29 a barrel.

This decline in prices follows a dip observed on Friday after a survey revealed that U.S. consumer sentiment had plummeted to a seven-month low in June, with households expressing concerns about their personal finances and inflation. Despite this, both benchmark contracts managed to achieve nearly a 4% gain last week, marking the highest weekly increase in percentage terms since April, fueled by indications of stronger fuel demand.

Monday's economic data release from China is expected to be pivotal for commodity markets this week, according to ANZ analysts. China's refinery throughput will serve as a gauge for oil demand, while additional data regarding retail sales, business investment, industrial production, and house price figures will provide a more comprehensive understanding of economic activities in the country.

Recent producer and consumer data have highlighted that China is still contending with deflationary pressures. Additionally, markets in the key oil trading hub of Singapore and other countries in the region were closed on Monday due to a public holiday.