Yemisi Izuora
Oil prices edged down on Monday, dragged down by expectations that China, the world’s largest crude oil importer, will post its slowest pace of economic growth in at least 27 years as the Sino-US trade war bites.
Brent crude futures for September fell 6 cents to $66.66 a barrel while US crude for August was down 5 cents at $60.16 a barrel, after both contracts last week posted their biggest weekly gains in three weeks.
Analysts polled by Reuters expect China on Monday to report its gross domestic product (GDP) grew 6.2 per cent in the April-June quarter from a year earlier, the slowest pace since the first quarter of 1992, the earliest quarterly data on record.
Beijing could step up support measures that could be positive for oil demand, but analysts say the room for aggressive stimulus is limited by fears of adding to already high debt levels and structural risks.
Oil prices remained supported by lower US oil production after a tropical storm slashed US Gulf of Mexico crude output by 73 per cent, or 1.38 million barrels per day.
Refineries in the path of Tropical Storm Barry continued to operate despite flood threats.