Oil down as markets focus on China's economic data

ANKARA

Oil prices fell on Monday as investors weighed China's central bank's decision to keep interest rates unchanged, while fears of a weakening global economy continued to weigh on prices.

International benchmark Brent crude traded at $73.89 per barrel at 10.11 a.m. local time (0711GMT), a 0.37% decrease from the closing price of $74.17 a barrel in the previous trading session.

The American benchmark West Texas Intermediate (WTI) registered at the same time at $69.83 per barrel, down 0.29% from the previous session's close of $70.04 per barrel.

Oil markets have been focused on China's economic growth as the world's second-largest economy attempts to recover from the COVID-19 pandemic's two-year slump.

This bearish sentiment was bolstered after consumer inflation in China rose at the slowest rate in more than two years in April, rattling markets due to global economic uncertainty and concerns about the country's economic recovery.

On Monday, China’s central bank kept its key policy rates unchanged to further fan fears about the trajectory of the country’s economy.

On the supply side, investors are keeping tabs on the meeting of the OPEC+ group in June.

The group's decision to cut 1.2 million barrels per day at the beginning of April is raising concerns about weakening oil supply in the second half of the year.

Despite forecasts that the group may make additional cuts to support prices at the next meeting, international media outlets reported that Iraqi Oil Minister Hayyan Abdulgani said he does not expect that the OPEC+ group will further cut oil production at its next meeting on June 4.