Crude prices drop about $3 as Trump gives a deadline to Russia to end the war in Ukraine.
The solid economic growth in China and its higher demand for Oil are keeping prices above June lows.
OPEC+ is considering pausing supply hikes from October.
Crude Oil Prices reverted to previous gains on Monday, and dropped to session lows at $65.40 on Tuesday’s early trading, as Trump gave a 50-day deadline to apply further sanctions to Russia, which eased market concerns about supply.
The price of the US benchmark West Texas Intermediate reached three-week highs at $68.50 during Monday’s European session as the market awaited a “major statement on Russia”, anticipated by the US President on Friday.
Upbeat data from China eases fears of a decline in demand
On the other hand, the stronger-than-expected Gross Domestic Product and Industrial Production figures seen in China have calmed investors’ fears about a decline in demand from the world’s major Oil importer.
Recent data revealed that China ramped up crude purchases by 7.4% on the year in May, to 12.14 million barrels, the highest level in almost two years. These data, coupled with OPEC projections of an increase in demand in the third quarter of the year, are keeping Oil prices from retrearing further.
Apart from that, market sources suggest that OPEC+ countries might be nearing the end of their supply hikes and that the world’s major Oil producers might be considering a pause in October. This is also another source of support for Crude prices.
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