2024.01.1708:55:00UTC+00Oil Prices Fall On China Demand Concerns

Oil prices fell over 2 percent on Wednesday as China reported fourth-quarter GDP figures slightly below expectations and hawkish talks by both Fed and ECB policymakers indicated no rate cuts anytime soon.

Benchmark crude futures fell a little over 2 percent to $76.72 a barrel, while WTI crude futures were down 2.2 percent at $70.94.

The dollar steadied at a one-month high amid a risk-off market mood after Federal Reserve Governor Christopher Waller indicated in a speech that inflation is nearing its target, but the timing and rate cuts will depend on incoming data.

Several ECB policymakers also warned that markets are getting ahead on rate cut expectations.

A slew of key China economic data pointed to a patchy recovery in the world's second-biggest economy, raising fresh concerns over fuel demand.

Investors also remain hopeful that ongoing developments in the Red Sea, Gaza and Ukraine will not hurt supply.