Oil demand in China has slowed significantly and downward revisions to U.S. job growth have the market worried.
The U.S. benchmark is now up just 0.91% for the year, while Brent has erased all of its gain for 2024.
Demand is slowing in China as drivers switch from gas to electric vehicles and trucks transition to liquid natural gas from diesel.U.S. crude oil was above $72 per barrel on Thursday after erasing most of its gains for the year as soft demand in China and worries about the U.S. economy weighed on the market.
The U.S. benchmark is now up just 0.91% for the year, while global benchmark Brent crude has erased all of its gains for 2024.But Daan Struyven, head of oil research at Goldman Sachs, said the demand outlook in China is more worrying for the global market. Oil demand in China has grown by 200,000 barrels a day in the first half of 2024 compared to the year-ago period, three times below the average growth of 600,000 bpd from 2016 to 2019, Struyven told CNBC.October contract: $76.51 per barrel, up 46 cents, or 0.6%. Year to date, the global benchmark has pulled back 0.67%.August contract: $2.14 per thousand cubic feet, nearly 3 cents higher, or 1.29%. Year to date, gas is down 14.5%.
"Some of the slowdown is to be expected with slower China GDP growth and the rapid rise in EVs," Struvyen told CNBC's "" on Wednesday. But "some of the slowdown is unexpected — this switching to LNG away from diesel," he said.The long-term winners as AI boosts U.S. power needs, according to Mizuho
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