Investing.com-- Oil prices steadied Monday despite underwhelming growth data from China presenting a weak outlook for demand.
At 09:20 ET (13:20 GMT), Brent oil futures slipped marginally to $85.02 a barrel, while West Texas Intermediate crude futures dropped slightly to $81.00 a barrel.
Chinese GDP underwhelms
Concerns over waning oil demand in top importer China were furthered Monday by the release of gross domestic product data showing the economy grew less than expected in the second quarter.
GDP grew 4.7% year-on-year, less than a rise of 5.1% expected and slowing from the 5.3% seen in the prior quarter.
The world's second-largest economy registered its weakest growth since the first quarter of 2023, with the softer reading largely driven by laggard consumer spending, which slowed in the face of heightened economic uncertainty.
While the country still remained on track to meet its 5% annual GDP target, Monday’s data showed that it faced increased economic headwinds. This could bode poorly for crude demand in the world’s biggest oil importer.
Additionally, China's crude oil imports fell 2.3% in the first half of this year to 11.05 million barrels a day, amid disappointing fuel demand.
"Given that China is expected to make up the majority of oil demand growth this year, it is not surprising signs of weakness in Chinese demand are a concern," said analysts at ING, in a note.
Focus is now squarely on the Third Plenum of the Chinese Communist Party, set to begin from this week, for more cues on the economy.
The event is a meeting of top Chinese officials, and could potentially yield more stimulus measures to support the economy.
Dollar gains after Trump shooting
Also weighing was the rise in the dollar against a basket of currencies on Monday, seeing some safe haven demand after a shooting at a Trump rally in Butler, Pennsylvania on Saturday.
A stronger dollar makes commodities, like oil, which are denominated in the greenback, more expensive for foreign buyers.
Trump's ear was grazed by a bullet, but he was otherwise unharmed. He is likely to make an appearance at the 2024 Republican convention later this week, and is widely expected to be officially nominated as the Republican candidate for the 2024 presidential elections.
Analysts speculated that the shooting could improve Trump’s prospects for a victory over Joe Biden in the race.
But the move also ramped up uncertainty over the U.S. political climate, largely offsetting optimism over lower interest rates in the country.
The volatile situation in the Middle East also continues to provide a geopolitical premium for oil.
(Ambar Warrick contributed to this article.)