Oil falls as China stimulus details awaited

Oil fell as investors awaited more details on how China aims to support its economy in the second half of the year, with other commodities falling as the week began trading. U.S. crude fell below $71 a barrel after rising more than 2% last week as China cut interest rates and hinted more support could be provided. Investors’ focus was on the second day of U.S. Secretary of State Antony Blinken’s visit to Beijing after a positive start to the trip. Crude trading volumes, particularly for U.S. crude, are likely to be lower than usual on Monday as the United States celebrates Juneteenth. Oil has slumped in the first half of the year as China’s zero-Covid recovery fell short and global supplies, including from Russia, remained ample. The Organization of the Petroleum Exporting Countries and its allies have announced supply cuts, including a voluntary cut of 1 million barrels a day from Saudi Arabia from July, in an attempt to stem the decline. “Prices remain locked in a consolidation pattern,” said Yeap Jun Rong, chief market strategist at IG Asia Pte. He said the worst-case economic conditions that could keep prices low for longer are yet to come. While local Chinese media has been full of reports of more economic support coming, details are scarce. Goldman Sachs Group Inc. became the latest bank to cut its forecast for the Chinese economy, citing limited options for increasing stimulus, according to a research report on Sunday.