Oil closes lower on China’s rate-cut decision

Oil closed lower today, July 22, after recording losses last week and touching the lowest levels in five weeks, over concerns about the outlook for demand from China. 

Brent crude futures for September delivery fell 0.3%, or 23 cents, to $82.40 a barrel, after rising to $83.22. 

WTI crude for August delivery (the contract expires today) declined 0.45%, or 35 cents, to record $79.78 per barrel, after rising to $80.69. 

The People's Bank of China cut its seven-day reverse repo rate for the first time since August 2023, and Chinese banks then cut one-year borrowing costs to 3.35% from 3.45%, after the world's second-largest economy grew 4.7% in the second quarter, missing market expectations. 

Morgan Stanley expects Brent crude to fall to levels between $75 and $80 per barrel in 2025, with OPEC+ supply growing by about 2.5 million barrels per day, which it said would far outstrip demand.