Crude swings lower amid demand worries

Bloomberg

Crude dipped this month as a slew of factors from threats of weaker demand to key OPEC producers boosting output has weighed on the market.
Futures in New York have lost almost 7 percent in July as some of the largest producers are seen raising supply levels. On Tuesday, prices also declined amid low-volume trading and a strengthening dollar. Meanwhile, US President Donald Trump said he would be willing to meet Iranian President Hassan Rouhani with “no preconditions” following Trump’s decision to withdraw from a 2015 nuclear deal.
“It’s some of these concerns about oversupply with OPEC. There are also starting to be concerns about the slowdown or the plateauing in demand,” said Ashley Petersen, lead oil analyst at Stratas Advisors in New York. Still, the low volume is indicative of “the summer doldrums. The prices are down, but the activity actually hasn’t been that high.”
The US benchmark crude is set to post the worst monthly loss since July 2016 as trade tensions between the US and China weigh heavily on the market and as production from Saudi Arabia and Russia surge. Output in the US remains at record levels.
Consultants JBC Energy estimated that Saudi Arabia raised production by 310,000 barrels a day to 10.8 million a day in July.
West Texas Intermediate crude for September delivery fell $1.10 to $69.03 a barrel on the New York Mercantile Exchange.
Total volume traded was about 33 percent below the 100-day average.
Brent for September settlement, which was expected to expire on Tuesday, slid 67 cents to $74.30 a barrel on the London-based ICE Futures Europe exchange. The global benchmark traded at a $5.31 premium to September WTI.