Oil prices fell more than $5 a barrel on Monday on demand fears, as disappointing economic data from China renewed worries about a global recession.
Brent crude futures were down $5.19 (BRL 26), or 5.29%, to settle at $92.96 (BRL 474) a barrel at 10:08 am ET, after losing 1.5 % on Friday (12).
WTI (US oil) lost US$ 5.01, or 5.44%, to US$ 87.08 (R$ 444), after falling 2.4% in the previous session.
Open interest for Brent crude this month is down 20% from August last year.
“The open interest is still falling, with some (market players) not interested in touching it because of volatility. This is, in my opinion, the reason that results in higher volumes to the downside,” said the UBS oil analyst Giovanni Staunovo, adding that the trigger for the fall on Monday was weak Chinese data.
In China, the world’s biggest oil importer, the central bank cut lending rates to revive demand as data showed the economy unexpectedly slowing in July, with industrial and retail activity pressured by Beijing’s zero Covid policy and a real estate crisis.
China’s refinery output fell to 12.53 million bpd (barrels per day), the lowest level since March 2020, government data showed.
Additional reporting by Florence Tan
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