DIGIVESTASI - Oil prices fell at the open on Wednesday (April 17) amid fears of weakening global demand after China's latest economic data was less positive. In addition, the market doubts that key US interest rates will be lowered anytime soon. Market concerns over the expected drop in demand outweighed concerns over rising tensions in the Middle East following Iran's retaliation against Israel. 

Brent crude oil futures fell 7 cents, or 0.1%, to $89.16 a barrel. Meanwhile, US WTI crude futures also fell 10 cents, or 0.1%, to $85.26 a barrel. NS Trading President Hiroyuki Kikukawa told Reuters on Wednesday (April 17), ``Concerns over demand are rising due to expectations that a U.S. rate cut is likely to be delayed and weaker-than-expected Chinese economic data.'' The numbers are rising," he said.

In China, the world's largest oil importer, economic growth in the first quarter of 2024 exceeded expectations. However, several indicators such as real estate investment, retail sales and industrial production showed that domestic demand was still weak, weighing on overall momentum.

Meanwhile, inflation data in the US was stronger than analysts expected. The Federal Reserve is likely to cut interest rates until they are fully convinced that inflation is on track to reach 2%. Regarding tensions between Iran and Israel, analysts say Iran's unprecedented missile and drone attacks on Israel are unlikely to trigger dramatic sanctions on Iranian oil exports by Joe Biden's administration.

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