(Bloomberg) -- Oil fell as weak economic data from China compounded a tough outlook for demand, and wider markets carried a risk-off tone.
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Brent traded near $70 a barrel after touching the lowest since 2021 last week, while West Texas Intermediate was below $67. China’s consumer inflation fell more than expected and was below zero for the first time in 13 months, highlighting persistent deflationary pressures in the biggest crude importer.
In the US, President Donald Trump told Fox News the economy faced a “period of transition” after his actions on tariffs, while avoiding making calls for a recession. On Friday, Federal Reserve Chair Jerome Powell acknowledged the rise in uncertainty, but said officials didn’t need to rush to cut rates.
Crude has been hit by a confluence of bearish factors, including the escalating global trade war, plans by OPEC and allies to increase production, and talks to end the three-year war in Ukraine. That’s spurred speculators to cut net-bullish bets on global benchmark Brent by the most since July.
“Asia starts the week on a cautious tone, with crude working in sympathy to the move lower” in wider markets, said Chris Weston, head of research at Pepperstone Group. The potential for Brent going below $68.33 a barrel — last week’s intraday low — remained in focus, with “the possibility the floor gives way and we see technical and forced selling,” he said.
Reflecting the weakening outlook, Saudi Arabia on Friday cut prices for Asia, its largest market, for the first time in three months. The move came after OPEC+ unexpectedly agreed to add supply from April after multiple delays.
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