Investing.com-- Oil prices remained subdued in Asian trade on Monday as the dollar strengthened following an assassination attempt on former U.S. President Donald Trump. Additionally, underwhelming growth data from China painted a weak picture for future demand.
Trading volumes in Asia were impacted by a Japanese market holiday, while crude oil had already been facing losses from the previous week due to a decrease in Chinese imports and signs of a slowing global economy affecting oil demand.
Brent crude expiring in September edged up 0.1% to $85.10 a barrel, while WTI crude rose 0.1% to $84.15 a barrel by 22:04 ET (02:04 GMT).
Dollar Sees Safe Haven Buying After Trump Shooting
The U.S. dollar rose 0.2% against a basket of currencies on Monday, as investors sought safe havens following a shooting incident at a Trump rally in Butler, Pennsylvania over the weekend.
Despite being hit by a bullet in the ear, Trump emerged unharmed and even rallied his supporters to “fight!” after the incident. He is expected to appear at the 2024 Republican convention this week and is likely to be officially nominated as the Republican candidate for the 2024 presidential elections.
Analysts believe that the shooting could potentially boost Trump’s chances of winning against Joe Biden, but it has also increased uncertainty in the U.S. political landscape, counteracting the optimism surrounding lower interest rates in the country.
China Jitters as GDP Underwhelms and Third Plenum Looms
Concerns about weakening oil demand in China, the top oil importer, were exacerbated by GDP data showing that the economy grew less than anticipated in the second quarter.
China’s GDP grew by 4.7% year-on-year, falling short of the expected 5.1% rise and decelerating from the 5.3% growth in the previous quarter. Sluggish consumer spending, amid heightened economic uncertainty, was the primary driver behind the softer reading.
While China is still on track to achieve its 5% annual GDP target, the latest data suggests that it is facing increased economic challenges, which could negatively impact crude oil demand from the largest importer in the world.
All eyes are now on the upcoming Third Plenum of the Chinese Communist Party, scheduled to commence this week, for further insights into the country's economic direction. The event, which brings together top Chinese officials, may result in additional stimulus measures to support the economy.
Analysis:
In summary, oil prices in Asia were affected by a stronger dollar and concerns about weakening demand from China. The shooting incident involving former President Trump added to the market uncertainty, while China’s lower-than-expected GDP growth raised further apprehensions about global economic health. Investors are closely watching the upcoming Chinese Communist Party meeting for potential stimulus measures that could impact oil demand and overall market sentiment.