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Oil prices fall as US rate cut fails to boost market sentiment


“Ongoing demand concerns from China overshadowed the Fed’s decision,” IG market analyst Tony Sycamore said. Refinery output in China slowed for a fifth month in August, statistics bureau data showed over the weekend. China’s industrial output growth also slowed to a five-month low last month, and retail sales and new home prices weakened further.

However, Citi analysts said Chinese oil demand may rebound by 300,000 barrels per day year-on-year in the fourth quarter on improved independent refinery runs and the start-up of new refiner Shandong Yulong Petrochemical, offering some support to global demand.

Markets were keeping an eye on events in the Middle East after walkie-talkies used by Lebanese armed group Hezbollah exploded on Wednesday following similar explosions of pagers the previous day.

Israeli officials did not comment on the attacks, but security sources said Israeli spy agency Mossad was responsible, heightening fears of an escalation in Israel’s 11-month war in Gaza.