Oil prices experienced a significant drop on Tuesday morning, following a moderate decline on Monday.
According to Report, which cites Interfax, Brent crude futures for September delivery fell by $0.26 (0.31%) to $84.59 per barrel on the London ICE Futures exchange. Similarly, WTI futures for August delivery decreased by $0.31 (0.38%) to $81.60 per barrel on the New York Mercantile Exchange (NYMEX).
The primary catalyst for this downturn appears to be weak economic data from China, the world's second-largest oil consumer. Chinese GDP growth slowed to 4.7% year-on-year in the second quarter, down from 5.3% in the previous quarter.
StoneX analysts, led by Alex Hodes, emphasized the direct correlation between China's economic growth and global fuel demand, stating, "The growth of the Chinese economy is directly linked to global economic activity and fuel demand."
Adding to the market's volatility, traders are also weighing the impact of a recent assassination attempt on Donald Trump. The former US president sustained minor injuries in the incident, which some analysts believe could boost his chances in the upcoming November presidential elections.
Nigel Green, CEO of deVere Group, offered insight into the potential implications: "The Trump administration previously prioritized energy independence and economic growth over environmental regulations. If he becomes president again, we expect the same approach, which would be a positive factor for the energy sector, especially fossil fuels."