Investor Sentiment on China Dampens Oil Prices

Oil prices slipped due to concerns over the global economy, particularly China's slow post-pandemic recovery. Weak demand and rising prices have led to a slowdown in global business activity, with China's services sector expanding at its slowest pace in eight months. The strength of the US dollar also made oil more expensive for holders of other currencies, dampening demand. However, expectations of an extension in supply cuts by leading OPEC+ producers limited losses. Saudi Arabia is expected to extend voluntary oil cuts into October, and Russia will unveil a new OPEC+ supply cut deal this week.