Oil prices fell in early Asian trading on Tuesday, extending losses from the previous session, on concerns about Chinese demand and easing market anxiety over the possibility of escalating conflict in the Middle East.
price movement
Brent crude futures were down 12 cents, or 0.15 percent, at $79.78 a barrel by 0033 GMT.
U.S. crude futures fell 14 cents, or 0.18 percent, to $75.67 a barrel.
A wave of disappointing economic developments from China has rattled markets recently. A Reuters poll released on Monday suggested that China’s manufacturing activity contracted for a third month in July.
Also on Monday, Citi cut its China growth forecast to 4.8 percent from 5 percent after its growth missed analysts' estimates in the second quarter, noting that economic activity slowed further in July.
Oil prices fell 2 percent in the previous session after Israel indicated that its response to a Hezbollah rocket attack on the occupied Golan Heights on Saturday would be calibrated to avoid being drawn into a full-scale war in the Middle East.
This was supported by US diplomatic efforts, reported by Reuters on Monday, aimed at limiting Israel's response and preventing it from striking the Lebanese capital Beirut or any major civilian infrastructure in retaliation.
