By Peter Nurse
Investing.com -- Crude oil prices weakened Tuesday, continuing the sharp losses of the previous session on concerns slowing global growth will hit demand in the second half of this year.
U.S. Gasoline RBOB Futures rose 0.5% to $2.2107 a gallon.
Hitting sentiment Tuesday was the news that U.S. retail sales fell more than expected in July, dropping 1.1% last month, compared with the forecast of a 0.3% drop.
This follows on from Monday’s economic data showing Chinese industrial production and retail sales growth slowed sharply in July.
Adding to the negative news has been the spread of the Covid-19 delta variant, particularly in China, the second largest oil consumer in the world, undermining the outlook for demand as mobility restrictions are reintroduced.
The Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+, has also proceeded with plans to gradually increase production, rolling back the supply curbs it imposed in the early days of the pandemic.
In addition, there are growing signs that U.S. shale producers are ramping up activities. The latest data from Baker Hughes showed the U.S. rig count increased by 10 over the last week to 397, the largest weekly increase in rig activity since April. Also, the Energy Information Administration pointed to an increase in crude output at major shale basins to 8.09 million barrels a day, the highest since April 2020.
Attention will thus turn to the release of the latest U.S, crude inventories levels later Tuesday, from the industry body American Petroleum Institute , with last week seeing a draw of just over 800,000 barrels of oil.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.