Oil extends slump as Chinese data threatens demand outlook

​Oil edged lower, extending its biggest decline in four weeks as weaker-than-expected economic data from China added to concerns of weaker demand.

West Texas Intermediate fell below US$69 a barrel Wednesday after settling 4.4 per cent lower Tuesday. China’s manufacturing activity contracted at a worse pace than in April, raising a fresh signal the post-COVID rebound has lost momentum in the world’s biggest crude importer. The U.S. dollar also rose, making commodities priced in the currency more expensive for international investors.

“The bearish market mood persists, feeding itself on different things, especially China’s loss of economic momentum,” said Norbert Ruecker, head of economics and next generation research at Bank Julius Baer. “Western world oil demand stagnates, Russian flows establish themselves outside of the West’s hemisphere and petro-nations’ supplies are likely to continue to surpass pledged quotas.”