Oil Prices Plunge Further As US Crude Dropped Below US$75 A Barrel

NEW YORK, July 31 (Bernama-Sputnik) -- Crude oil prices sank further on Tuesday, with benchmark US crude falling below the crucial US$75 per barrel threshold and hitting a near two-month low.

Weakening Chinese economic data raised concerns about reduced oil demand from the world's largest importer, reported Sputnik.

Fresh tremors ran across the crude market after data out of China showed manufacturing activity in the world's number two economy likely shrank for a third month in July, according to a Reuters poll China’s government has vowed to step up support for the economy but investors have not been excited thus far by Beijing’s announcements.

Also weighing on crude prices were signs that Israel may be readying for a ceasefire to the seven-month-long Gaza war.

Since fighting broke out between Israeli and Hamas forces in December, the proximity of the Gaza war zone to some of the world’s biggest oil producers helped send a barrel beyond US$85 in March and June - especially after interruptions to some crude cargoes from rockets exchanged by the two sides.

If an Israel-Hamas ceasefire is to occur, it has "the potential to (remove) US$4 to US$7 (a barrel) of risk premium out of the market" for crude oil, Bob Yawger, director of energy futures at Mizuho, said in a note to the firm’s clients.

In Tuesday’s trade, US West Texas Intermediate (WTI) crude settled at US$74.73 per barrel, down US$1.08, or 1.4 per cent. WTI’s low for the session was US$74.61, marking a bottom not seen since its June low of 74.06.

July had been a torrid month for bulls in the oil market, with WTI on track to lose about 10 per cent - its most since September 2023, when it tumbled 11 per cent.

UK-origin Brent crude finished Monday’s New York session at US$78.63 per barrel, down US$1.15, or 1.4 per cent. For July, Brent was on track to fall 9 per cent, its biggest losing month since October 2022.

-- BERNAMA-SPUTNIK