Oil falls as demand concerns persist

Oil fell on lingering concerns about the demand outlook after a brief rebound following Saudi Arabia’s pledge to cut supply further. U.S. crude fell to $71 a barrel after closing 0.6 percent lower on Tuesday. The U.S. sees oil consumption halving this year from 2022 due to lower diesel use, according to a government report. Trade data from China on Wednesday also reflected weak global demand. Oil has lost about 12 percent this year as China’s sluggish recovery and the Federal Reserve’s tough monetary policy weigh on demand. Russian crude flows remain high even after the kingdom said it would reduce supply, prompting Moscow to urge greater transparency about its data. China’s exports fell for the first time in three months in May, official data showed on Wednesday. The figures were affected by the year-ago comparison basis but also reflect weak global demand.