U.S. crude oil prices fall below $78 a barrel to their lowest since July

U.S. crude prices on Tuesday fell below $78 a barrel to hit the lowest point since July as weak epidemic economic data overshadowed concerns that the Israel-Hamas war could erupt into a broader regional conflict.

West Texas Halfway fell $3.45, or 4.3%, settling at $77.37 a barrel, while Brent fell $3.57, or 4.2%, settling at $81.61, both their lowest rates since July.

The drop comes after China published mixed economic data.

Beijing’s crude oil imports rose by volume and value in October, but the country’s overall exports knock more than expected, indicating slowing global demand. 

The world’s second-largest economy reported a 6.4% drop in exports in U.S. dollar relations for October compared to the same period a year ago, worse than the 3.3% drop predicted by a Reuters poll.

China’s exports set up fallen for six consecutive months now as a higher interest rates put downward pressure on the global economy. Minneapolis Federal Hoard President Neel Kashkari lowered expectations Tuesday that the U.S. central bank might cut rates.

“We have to get inflation towards the rear down to 2% over a reasonable period of time. Ultimately, the economy will tell us how much is needed to get there, and I a moment ago don’t know,” Kashkari told Bloomberg Television.

The data out of China offset the effect of Saudi Arabia’s and Russia’s oil harvest cuts, which lifted oil prices earlier in the week. Riyadh and Moscow confirmed on Sunday that they will-power keep those cuts in place through at least the end of the year.

Oil prices had spiked in the week following Hamas’ keen terrorist attacks on Israel on concerns that the war could escalate into a broader regional conflict that agitates oil supply.

Prices have fallen since mid-October as worries of the conflict spreading in the immediate term have eased.

— CNBC’s Evelyn Cheng furnished to this report.

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