(Bloomberg) — Brent crude slumped below $80 a barrel for the first time since June 10, driven by algorithmic trading and signs of poor demand from China, the world’s top oil importer.
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Commodity trading advisers have been dumping their bullish positions after futures dipped below key support levels. China recorded its slowest economic growth in five quarters in the three months through June, and the International Energy Agency has cited the slowdown as a major factor in weaker global oil consumption growth.
Still, crude prices remain higher year-to-date, helped by OPEC+ supply cutbacks and expectations for lower US interest rates, perhaps as soon as September. Political risks remain front and center as investors weigh the implications of US President Joe Biden dropping his reelection bid.
–With assistance from Jordan Fitzgerald.
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