WTI remains below $75.50 due to demand concerns in China

• WTI price depreciated as last week’s data showed China's economy lost momentum in July.
• The prices of crude Oil may appreciate due to rising Middle-East tensions following Hamas’s rejection of a ceasefire deal.
• The downside of the Oil could be restrained due to rising bets of a Fed rate cut in September.

West Texas Intermediate (WTI) Oil price hovers around $75.30 per barrel during the Asian session on Monday. Crude Oil prices receive downward pressure due to concerns over weaker demand in top Oil importer China.

Last week, data from China showed Industrial Production increased by 5.1% year-on-year in July, falling short of the 5.2% expected and easing from the 5.3% growth seen in the previous month. This marks the third consecutive month of moderation in industrial output.

The prices of crude Oil may appreciate due to rising concerns over geopolitical tensions in the Middle East following Hamas’s rejection of a ceasefire deal on Sunday. Hamas has issued a statement rejecting the terms for a hostage release-ceasefire deal discussed in Doha on Thursday and Friday. The group accuses Prime Minister Benjamin Netanyahu of introducing new obstacles into the negotiations, according to Reuters citing a local news agency Times of Israel.

Israeli Prime Minister Benjamin Netanyahu is scheduled to host US Secretary of State Antony Blinken on Monday. Following their meeting, Blinken will travel to Cairo, where negotiations on a deal are continuing. The US has announced plans to host a second meeting later in the week and aims to finalize the agreement by the end of the week.

The downside of the Oil could be restrained due to the rising odds of an interest rate cut by the Federal Reserve (Fed) starting in September increases. Last week's US economic data showed Retail Sales exceeding expectations, while both the Producer Price Index (PPI) and Consumer Price Index (CPI) indicated that inflation is easing. Lower borrowing cost may positively impact the US economic activities.

Federal Reserve Bank of San Francisco President Mary Daly emphasized Sunday that the US central bank should take a gradual approach to reducing borrowing costs, according to the Financial Times. Additionally, Federal Reserve Bank of Chicago President Austan Goolsbee warned that central bank officials should be cautious about keeping a restrictive policy in place longer than necessary.