Oil pumpjacks operate in Los Angeles, California, July 31, 2023.
Mario Tama | Getty Images
U.S. crude on Friday was on pace for a third weekly decline as worries about demand in China outweigh strong economic growth U.S.
U.S. oil is down 2.7% this week, while Brent is 0.84% lower.
The U.S. economy grew at a 2.8% pace in the second quarter, much stronger than expected. But oil imports to China were down 10.7% year over year in June, and refined product imports fell 32% during the same period, according to customs data. China is the world’s largest crude importer.
Here are today’s energy prices:
- West Texas Intermediate September contract: $77.92 per barrel, down 36 cents, or 0.46%. Year to date, U.S. oil has gained 8.8%.
- Brent September contract: $81.93 per barrel, down 44 cents, 0.53%. Year to date, the global benchmark is ahead 6.4%.
- RBOB Gasoline August contract: $2.46 per gallon, little changed. Year to date, gasoline is up 17.2%.
- Natural Gas August contract: $2.02 per thousand cubic feet, down 1 cent, or 0.73%. Year to date, gas is down 19.4%.
Surprise rate cuts in China raised concerns that Beijing is struggling to breathe life into the world’s second largest economy. The People’s Bank of China implemented a surprise interest rate cut on Monday, followed by a trim to its medium-term facility lending rate on Thursday.
“The semi-panicky moves are increasing concerns that Chinese energy demand may be further into the future than expected,” Bob Yawger, executive director of energy futures at Mizuho Securities, told clients in a note Thursday.