SINGAPORE- Oil prices were choppy on Thursday after falling over the past three sessions, with the undertone grim on worries that slowing growth in China and possible further US interest rate hikes will weaken fuel demand in the world’s two biggest economies.
Brent crude futures were up 8 cents, or 0.1 percent , at $83.53 a barrel after initially falling 0.5 percent . US West Texas Intermediate crude (WTI) was flat at $79.38.
“China’s economic concerns and broad risk-off sentiment on Wall Street pressed on the oil markets, with a strong USD adding to the downside pressure at the same time,” said Tina Teng, an analyst at CMC Markets.
Traders will closely watch Chinese economic data and government policy moves, in addition to US oil inventory data as oil producers in the country could start increasing output to gain market share amid production cuts by the OPEC+ group, Teng said.
Missed payments on investment products by a leading Chinese trust firm and a fall in home prices have added to worries that China’s deepening property sector crisis is stifling what little momentum the economy has left.
China’s central bank unexpectedly cut key policy rates for the second time in three months this week but analysts worry it may not be enough to arrest the economy’s downward spiral.
