Oil prices fall slightly in anticipation of news from China

Global oil prices fell slightly on June 20 morning, as markets are assessing the prospects for growth in demand for this type of crude in China, Report informs referring to the auction data.

The price of August futures for Brent crude fell by 0.2% to $75.94 per barrel, August futures for WTI decreased in price by 0.49% to $71.16.

Investors are assessing the prospects for economic recovery in China - one of the largest consumers and importers of oil. According to media reports last week, the authorities plan to support the country’s economy. In addition, all financial markets, including futures, are affected by the monetary policy of world regulators.

Earlier on June 20, the People’s Bank of China (Central Bank) lowered the main rate on loans for first-class borrowers (LPR, loan prime rate) to 3.55% for the first time since August 2022. The annual LPR, which became a new lending benchmark in August 2019, did not change from April 2020 to December 2021, remaining at the level of 3.85%, however, in December 2021 it was lowered to 3.8%, in January 2022 to 3.7%, in August to 3.65% and after that it did not change.