Commodities: WTI skids to seven-week low after DoE weekly inventory data
West Texas Intermediate hit the skids following the release of unexpectedly bearish inventory data in the States and amid concerns that gasoline demand was already slowing.
According to the US Department of Energy, commercial crude oil stockpiles shrank by 1.3m barrels over the latest reference week to reach 407.4m barrels, versus analysts' forecasts calling for a decline of 3.3m barrels.
In parallel, the DoE said US gasoline inventories jumped by 2.5m barrels, which some analysts said might be a reflection that high prices were already hobbling demand.
"Inventories of crude oil slipped last week but there are signs that demand for products is faltering, reflected in the rise in gasoline stocks. Indeed, lower consumer demand in response to high prevailing prices is a key reason why we expect the price of oil to fall back in the second half of this year," Caroline Bain, chief commodities economist at Capital Economics, told clients.
As of 2002 BST, WTI futures for September delivery were down by 3.37% to $66.84 a barrel on the NYMEX, having ended the session at a seven-week low.
Similarly-dated NYMEX gasoline shed 3.83% to $2.0234 a gallon.
Meanwhile, the Bloomberg commodity index was down by 0.42% at 85.13, even as the US dollar spot index drifted lower by 0.13% to 95.0640.
To take note of, the latest reading on US consumer prices was scheduled for release on the following day.
On a more positive note, figures referencing the month of July released overnight revealed month-on-month increases in Chinese imports of crude oil, natural gas, coal, copper and iron ore of 4%, 28%, 49%, 29% and 4%, respectively.
Year-on-year, Chinese energy imports were up "strongly", said analysts at Barclays Research.
"However, potentially imminent retaliatory tariffs on imports of US crude oil, LPG, and LNG could have a significant impact on China’s energy commodities imports in the coming months," they went on to caution.
Indeed, on Wednesday Beijing and Washington announced that they would impose 25% tariffs on a further $16bn-worth of each others' exports, starting from 23 August, a development which some analysts said showed neither side was willing to back down.
Trading in the base metals space was subdued, with all the main contracts little changed in LME trading.
Three-month copper futures closed at $6,173 per metric tonne after having opened at $6,172.