Oil prices fall

OIL prices fell yesterday,following Chinese import data that highlighted an ongoing slowdown in demand from previously avid buyers, although evidence of falling US crude inventories and the introduction of Iranian sanctions helped stem losses.

Front-month Brent crude oil futures LCOc1 were down 38cents on the day at $74,27 a barrel by 1227 GMT, while US crude futures CLc1 were down 67 cents at $68,50 a barrel.

China’s crude imports recovered slightly in July after falling for the previous two months, but were still among the lowest this year due to a drop-off in demand from the country’s smaller independent, or “teapot”, refineries.

Shipments into the world’s biggest importer of crude came in at 36,02 million tonnes last month, or 8,48 million barrels per day, rising from 8,18 million bpd a year earlier and just up on June’s 8,36 million bpd, customs data showed.

“Weaker Chinese import figures are putting pressure on prices . . . It was above all subdued demand from smaller independent refineries that put on the brakes. They are battling with poorer margins due to government tax interventions and higher oil prices,” Commerzbank said in a note.

Singapore-based brokerage Phillip Futures said an escalating trade dispute between the United States and China has “unnerved investors on the prospect of lowered global oil demand growth”.

Markets remained supported by the introduction on Tuesday of new US sanctions against Iran, which initially target Iran’s purchases of US dollars in which oil is traded as well as metals trading, coal, industrial software and its auto sector. Reuters.