Brent crude futures fell 84 cents, or 0.9%, to $94.26 a barrel
by 0953 GMT. WTI crude futures dipped 45 cents, or 0.5%, to
$88.96 a barrel. The oil future benchmarks fell about 3% in
their previous sessions.
China's central bank cut lending rates to try to revive demand
as the nation's economy slowed unexpectedly in July after
Beijing's zero-COVID policy and a property crisis slowed factory
and retail activity.
"In our view, problems in the real estate sector, plus the
government's zero-COVID strategy, are likely to continue to
weigh on the economy in the short to medium term, meaning that
oil prices will probably face persistent headwinds from this
side," Commerzbank said in a note.
China's fuel product exports are expected to rebound in August
to their highest in nearly a year after Beijing issued more
quotas, adding pressure to already-shrinking refining margins.
Investors also monitored talks to revive the 2015 Iran nuclear
deal. More oil could enter the market if Iran and the United
States accept an offer from the European Union, which would
remove sanctions on Iranian oil exports, analysts said.
Iran responded to the European Union's "final" draft text to
save a 2015 nuclear deal on Monday, an EU official said, but
provided no details. The Iranian foreign minister called on the
United States to show flexibility to resolve three remaining
issues.
Barclays lowered its Brent price forecasts on Tuesday by $8 per
barrel for this year and next, as it expects a large surplus of
crude oil over the near-term due to "resilient" Russian
supplies.
In the United States, output in the major U.S. shale oil basins
will rise to 9.049 million barrels per day (bpd) in September,
the highest since March 2020, the U.S. Energy Information
Administration (EIA) said in a report on Monday. In the Permian,
the biggest U.S. shale oil basin, output will hit a record 5.408
million bpd, it said.
Market participants awaited industry data on U.S. crude
stockpiles expected later on Tuesday. Oil and gasoline
stockpiles likely fell last week, while distillate inventories
rose, a preliminary Reuters poll showed on Monday. [EIA/S]
(Additional reporitng by Muyu Xu in Singapore; editing by
Barbara Lewis)
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