Oil extended losses below $60 a barrel after slowing Chinese growth stoked demand concerns and a tropical storm that shut almost three-quarters of U.S. Gulf of Mexico production moved inland.
Futures in New York lost 0.5%, after ending Monday’s session down 1.1% for the biggest loss in almost two weeks. With Hurricane Barry now ashore and weakening, drillers have begun restaffing offshore installations in the Gulf. About 69% of crude output remained shuttered, the U.S. government said Monday, down from 73% over the weekend. Chinese government data, meanwhile, showed the world’s second-largest economy slowed to a three-decade low in the second quarter amid a prolonged trade dispute.
West Texas Intermediate for August delivery fell 28 cents to $59.30 a barrel on the New York Mercantile Exchange as at 8:16 a.m. Sydney time. August WTI ended Monday down 63 cents at $59.58.
Brent for September settlement finished 24 cents lower at $66.48 on the ICE Futures Europe Exchange.
Source : Bloomberg