Crude slips to fresh two-month lows, Brent around $79/b

Quantum intelligence on commodities – Crude oil futures fell on Tuesday, falling to their lowest levels since early June, marking the third session of price pullbacks.

First month September 24 ICE Brent futures were trading at $79.03/b (1650 GMT), compared with the day’s low of $78.43/b and Monday’s fix of $79.78/b.

At the same time, September 24 NYMEX WTI trade at $75.22/b from Monday’s settlement of $75.81/b.

Both benchmarks tested their lowest prices since the last OPEC+ meeting, when the group announced its plan to begin withdrawing some cuts from October.

The sharp pullback in July was largely driven by concerns over China’s slowing growth rate, which in turn is likely to weigh on oil demand.

“The crude oil market is struggling to move higher, even as there is evidence that supplies are tightening. Continued concerns about the Chinese economy appear to be another one of the things holding us back,” said Phil Flynn of The Price Futures Group. although noted US demand still appears robust.

Meanwhile, Citi cut its China growth forecast to 4.8% from 5% for the year after Beijing missed its target for the second quarter, while economic activity weakened further in July .

Investors continue to monitor developments in the Middle East, but with no immediate threat to oil supplies, events were shunned by oil traders.

Israeli Prime Minister Benjamin Netanyahu has vowed a “tough” response to the weekend rocket attack on the Golan Heights.

“The State of Israel will not and cannot let this go. Our response will come and it will be harsh,” he said in comments after visiting the region.

However, reports of strikes on Beirut helped lift prices from late-session lows.