©Reuters.
Investing.com–Oil prices fell in Asian trade on Monday, extending losses from the previous week as markets brace for lagging demand while looking well beyond 2024 supply outlook Did.
Mid-ring inflation data from China added to concerns about slowing demand for the world's largest oil importer, particularly as oil import data for the first two months of 2024.
Weak demand uncertainty was compounded by continued uncertainty over the path of U.S. interest rates, as Friday's data showed the U.S. labor space remains largely resilient.
May expiry fell 0.7% to $81.52 per barrel and by 21:20 (01:20 GMT) fell 0.8% to $76.91 per barrel.
Chinese demand fears remain
Data released over the weekend showed China rose slightly in February, benefiting from increased spending during the month's New Year holidays.
But it contracted more than expected during the period, showing that factories, China's biggest economic driver, are mainly under pressure.
The readings followed last week's disparaging of import data from China. The country imported 1,074 million barrels per day in January-February, up 3.3% year-on-year but down from 11.39 million barrels per day in December.
China has also set an overwhelming gross domestic product target for 2024 and has so far given few clues about its planned stimulus measures to support growth.
Concerns about slowing demand largely offset market expectations for tighter supplies this year, even after the oil exporting nation said it would maintain the current pace of production cuts.
Turbulence in the Middle East is also expected to persist as talk of an Israeli-Hamas ceasefire begins.
CPI data awaits as we call out fear in the US
Markets are now focused on key US inflation data due on Tuesday for more clues on the path of interest rates.
Federal Reserve officials warned last week that inflation will largely determine when the central bank starts cutting interest rates in 2024. US interest rates.
Tuesday's CPI reading showed inflation well above the Fed's 2% annual target, giving banks no immediate impetus to cut interest rates.
