Oil Prices Fluctuate Ahead of China's Lending Standards Decision

Oil prices fluctuated on Tuesday ahead of China's widely expected decision to lower lending standards to support the slowing recovery. Brent crude rose by three cents to $76.12 a barrel. West Texas Intermediate (WTI) crude remained unchanged at $71.29, with no settlement taking place on Monday due to a public holiday in the United States. The WTI contract expiring on July 20 fell by 58 cents to $71.35 a barrel. A Reuters survey indicated that China is widely expected to lower its main lending standards on Tuesday, marking the first easing of this kind in 10 months, after recent economic data showed that the retail and manufacturing sectors are struggling to maintain the momentum achieved earlier in the year. Last week, the Chinese government convened to discuss measures to stimulate economic growth, with many major banks revising down their growth forecasts for 2023 amid concerns about a stutter in the recovery following COVID-19. ANZ Research stated in a note to clients on Tuesday, "Doubts about Chinese stimulus measures have impacted sentiment." In terms of supply, Iran's crude oil exports and production have recorded new highs in 2023 despite U.S. sanctions. Russia is also scheduled to increase its diesel and marine fuel oil exports this month, exceeding the cuts from the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Moscow itself.