Oil futures prices fall to 8-month low amid weak demand

Crude oil futures fell below $71.30 a barrel on Tuesday, their lowest since hitting a seven-month low in August, as muted demand added to the impact of relatively ample supplies.

New data from China has added to concerns that economic growth in one of the world's biggest oil consumers is unlikely to recover this year, as key indicators of domestic demand for refineries fell more than expected in August. That was helped by earnings data from major Chinese oil producers and refineries reflecting lower demand for fuel, with Sinopec, PetroChina and CNOOC all reporting disappointing earnings figures, matching earlier ship-tracking data that showed a decline in the influx of oil supertankers into the country.

In the US, EIA data showed that oil consumption in June fell to its lowest seasonal level since 2020.

Meanwhile, OPEC has signaled that it will follow through on previous signals to increase OPEC+ production in the fourth quarter, which would offset the decline in Libya.