WTI slides below $68.00 amid renewed demand fears after dismal Chinese macro data

• WTI kicks off the new week on a weaker note in reaction to the dismal Chinese macro data.
• Dovish Fed-inspired USD selling bias lends support and helps limit losses for the commodity.
• The mixed fundamental backdrop warrants some caution before placing fresh directional bets.

West Texas Intermediate (WTI) US crude Oil prices attract some sellers during the Asian session on Monday and currently trade just below the $68.00 round-figure mark, down over 0.60% for the day. 

Concerns about a slowing fuel demand in the world's biggest Oil importer resurfaced after a string of poor Chinese data over the weekend, which, in turn, is seen as a key factor weighing on the black liquid. The National Bureau of Statistics data reported on Saturday that China's Retail Sales rose by 2.1% in August from a year ago, down from the 2.7% increase in the previous month and missing expectations. Adding to this, Industrial Production growth slowed from 5.1% in July to 4.5% during the reported month. Furthermore, Fixed Asset Investment rose by 3.4% for the January to August period, slower than the market forecast, and the jobless rate unexpectedly climbed to a six-month high. 

This comes on top of a downward revision of demand growth forecasts by the Organization of Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA) and prompts fresh selling around Crude Oil prices. That said, the prevalent US Dollar (USD) selling bias, led by expectations for an oversized interest rate cut by the Federal Reserve (Fed), lends support to the commodity and helps limit the downside. Hence, it will be prudent to wait for some follow-through selling before confirming that the recent bounce from the lowest level since May 2023 has run out of steam and positioning for the resumption of the prior downtrend witnessed over the past two months or so.