Oil pumpjacks operate in Los Angeles, California, July 31, 2023.
Mario Tama | Getty Images
U.S. crude fell more than 1% on Friday, posting a third weekly decline as worries about demand in China outweigh strong economic growth in the U.S.
West Texas Intermediate oil fell 3.7% this week, while Brent dropped 1.8%.
The U.S. economy grew at a 2.8% pace in the second quarter, much stronger than expected. But oil imports to China were down 10.7% year over year in June, and refined product imports fell 32% during the same period, according to customs data. China is the world’s largest crude importer.
Here are Friday’s closing energy prices:
- West Texas Intermediate September contract: $77.16 per barrel, down $1.12, or 1.43%. Year to date, U.S. oil has gained 7.7%.
- Brent September contract: $81.13 per barrel, down $1.24, or 1.51%. Year to date, the global benchmark is ahead 5.3%.
- RBOB Gasoline August contract: $2.46 per gallon, little changed. Year to date, gasoline is up 17%.
- Natural Gas August contract: $2 per thousand cubic feet, down 3 cents, or 1.71%. Year to date, gas is down 20.2%.
Surprise rate cuts in China raised concerns that Beijing is struggling to breathe life into the world’s second-largest economy. The People’s Bank of China implemented a surprise interest rate reduction on Monday, followed by a trim to its medium-term facility lending rate on Thursday.
“The semi-panicky moves are increasing concerns that Chinese energy demand may be further into the future than expected,” Bob Yawger, executive director of energy futures at Mizuho Securities, told clients in a note Thursday.
