Oil Holds its Ground as Chinese Demand Concerns Weigh

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
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Oil Holds its Ground as Chinese Demand Concerns Weigh

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)

Oil held its ground on Monday as downward pressure from concern about demand in top importer China offset support from strong demand elsewhere, OPEC+ supply restraint and geopolitical tensions in the Middle East.

The reaction of the wider markets to the attempted assassination of former US President Donald Trump was in focus. The US dollar steadied after gains earlier in the session that had weighed on oil, Reuters reported.

Brent crude futures were up 3 cents at $85.06 a barrel by 1326 GMT. US West Texas Intermediate crude gained 7 cents to $82.28.

"Chinese data including refinery runs and crude imports are not supportive," said UBS analyst Giovanni Staunovo. "But demand growth elsewhere is still healthy."

Crude fell last week after four weeks of gains as hopes of strong US summer demand were countered by concern over demand in China.

Chinese data on Monday added to that concern. The world's second-largest economy grew by 4.7% in the April to June quarter, official figures showed, the slowest growth since the first quarter of 2023.

On Friday separate figures showed China's crude oil imports fell 2.3% in the first half of this year.

However, the volatile situation in the Middle East continues to provide a geopolitical premium for oil, though ample spare capacity held by Saudi Arabia and other members of OPEC has limited price support, analysts say.

"Geopolitical tensions in the Middle East, including volatile Israel-Hamas clashes and stalled peace talks, could remain a driving factor for oil prices due to concerns over regional stability," said George Pavel, general manager at Capex.com Middle East.

The oil market is also broadly underpinned by supply cuts from the OPEC+ group of producers. Iraq's oil ministry said at the weekend that it will compensate for overproduction since the beginning of 2024.

Market sentiment was supported by a US inflation report for June that came in below expectations, raising hopes for an interest rate reduction, though challenges persisted as China’s crude imports in June declined, highlighting ongoing market difficulties, Pavel added.

Federal Reserve Chair Jerome Powell is due to speak later in the day, and is likely to be asked for his reaction to last week's subdued inflation reading.

Markets are pricing in a 96% chance the Fed will cut rates in September, up from 72% a week earlier.



Lebanon's New Central Bank Chief Vows to Fight Money Laundering

Lebanon's newly appointed central bank governor Karim Souaid speaks during a handover ceremony in Beirut on April 4, 2025. (Photo by ANWAR AMRO / AFP)
Lebanon's newly appointed central bank governor Karim Souaid speaks during a handover ceremony in Beirut on April 4, 2025. (Photo by ANWAR AMRO / AFP)
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Lebanon's New Central Bank Chief Vows to Fight Money Laundering

Lebanon's newly appointed central bank governor Karim Souaid speaks during a handover ceremony in Beirut on April 4, 2025. (Photo by ANWAR AMRO / AFP)
Lebanon's newly appointed central bank governor Karim Souaid speaks during a handover ceremony in Beirut on April 4, 2025. (Photo by ANWAR AMRO / AFP)

Lebanon’s new central bank governor vowed Friday that the institution will fight money laundering and the financing of terrorism and will work independently away from political intervention.
Karim Souaid, who was speaking after officially taking office in Beirut, added that he will work on restructuring the banking sector, public debt and returning money to depositors, The Associated Press reported.
Lebanon’s economy has been witnessing its worst crisis in its modern history since 2019 and the state must implement reforms demanded by the international community. Such reforms are needed to unlock international aid, and on top of that, Israel’s 14-month war with Hezbollah that caused what the World Bank estimates was $11 billion in damages and economic losses.

Since the historic meltdown began Lebanon has been running on a cash economy and in October, the Paris-based Financial Action Task Force, or FATF, an international anti-money laundering watchdog, placed Lebanon on its “grey list.”
“We will work on implementing international laws on top of them combating money laundering and supporting terrorism,” Souaid said.

The former asset manager added that banks in Lebanon should recapitalize by pumping new money and those that cannot and don’t want to can merge with other lenders. He said that the priority will be to return deposits starting with people who have small accounts. He said the return of deposits should be the responsibility of the banks, central bank and the state.

Souaid said the central bank will study all economic recovery plans put forward by previous governments to help the small nation get out of the crisis.

Souaid also pledged to safeguard the central bank's independence from political pressure and prevent conflicts of interest.
"I will ensure that this national institution remains independent in its decision-making, shielded from interference, and grounded in the core principles of transparency and integrity," he said.

Wassim Mansouri, who had been acting central bank governor since July 2023, said the central bank’s reserves stood at 10.727 billion at the end of March.

Souaid succeeds Riad Salameh, the embattled former governor of 30 years whose term ended with several international corruption cases lodged against him and for embezzlement and other financial crimes.