Oil prices were muted on Monday as the U.S. dollar strengthened following an assassination attempt on former President Donald Trump. Underwhelming economic growth data from China also raised concerns about weakening demand.
Trading volumes were somewhat dampened by a market holiday in Japan. Crude prices were already under pressure last week due to a drop in Chinese imports and signs of a cooling global economy, which clouded the outlook for oil demand.
Brent oil futures for September delivery recorded $85.10 per barrel, while West Texas Intermediate crude futures reached $84.15 per barrel by 22:04 ET (02:04 GMT).
Meanwhile, the U.S. dollar index climbed 0.2 percent on Monday.
China’s underwhelming GDP data raises concerns over crude demand
Concerns over waning oil demand in China, the world’s largest crude importer, were exacerbated by disappointing GDP data. The Chinese economy grew 4.7 percent year-on-year in the second quarter, lower than the expected 5.1 percent and slower than the 5.3 percent expansion in the previous quarter. The softer performance was largely driven by weaker consumer spending amid heightened economic uncertainty.
Read more: Oil prices rise on softer U.S. inflation, summer demand hopes
Investors await policy cues from upcoming Chinese leadership meeting
While China remains on track to meet its annual GDP target of 5 percent, Monday’s data suggested that the economy is facing mounting headwinds, which could negatively impact crude demand. Investors are now closely watching the upcoming Third Plenum of the Chinese Communist Party, which could potentially unveil additional stimulus measures to support the economy.
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