On Monday, oil prices fell sharply after weak economic data from China raised fears that a slowing global economy will reduce demand for energy products.
September natural gas NGU 22, dropped by 1.4% to $8.64 per million British thermal units, gaining 8.7% last week.
Data from China showed that there was fading growth in the world's second biggest economy at the beginning of the week. Industrial productio and retail sales were lower than the previous month and were not covered by analysts forecasts.
The Chinese economic data revealed the ongoing impact of COVID 19 lockdowns and an escalating property crisis. China s central bank cut key lending rates overnight in an effort to stimulate activity, which removed some of the pain resulting from the releases, Richard Hunter, head of markets at Interactive Investor, told clients in a note. After China's economic recovery unexpectedly weakened in July on renewed Covid locks and after data from Bloomberg showed a 10% year-on-year drop in oil demand last month, crude oil futures trade lower, said Ole Hansen, head of commodity strategy at Saxo Bank. The prospect of waning demand from the global manufacturing powerhouse is weighing on the energy markets. The prospect of more Iranian supply was weighed down by speculation that an EU proposal to revive the 2015 Iran nuclear deal could be agreed, according to Hansen. The latest pullback in crude futures takes oil closer to its cheapest since February, before Russia's invasion of Ukraine caused a spike in energy costs. There were signs that inflationary pressures for U.S. households were continuing to fall as natural gas and gasoline futures followed oil prices lower. U.S. motorists have seen a decline in gasoline prices over the past week, with the average price for regular-grade gas falling below $4 a gallon for the first time in months. RBC s Helima Croft will be there.