WTI crude futures fell toward $71 per barrel on Tuesday, giving back some gains from last week as global economic uncertainties continued to weigh on the demand outlook. Major banks have downgraded their GDP growth forecasts for China as latest data pointed to a faltering post-pandemic recovery in the world’s top crude importer. Meanwhile, the US oil benchmark gained 2.5% last week as interest rate cuts in China and a pause in the US Federal Reserve’s tightening campaign raised hopes for a demand rebound. Oil markets also got a boost from a sharp decline in the dollar, as a weaker greenback makes oil cheaper for holders of other currencies and drives up risk appetite in the markets. On the supply side, voluntary output cuts implemented in May by OPEC+ and additional cuts by Saudi Arabia in July kept oil prices supported.
