Oil prices down due to challenges facing the Chinese economy

Oil prices fell on Tuesday, continuing losses of more than 1% from the previous session due to the prospects for the Chinese economy, but the losses were limited, supported by concerns about supplies caused by escalating tension in the Middle East.

According to Reuters, Brent crude futures for March delivery, which are scheduled to expire on Wednesday, fell 52 cents, equivalent to 0.6%, to $81.88 per barrel by 1413 GMT. The most active April contracts were trading down 50 cents, or 0.6 percent, to $81.33 a barrel.

US West Texas Intermediate crude fell 29 cents, or 0.4%, to $76.49 a barrel.

Both contracts fell more than a dollar on Monday, as the deepening real estate crisis fueled concerns about Chinese demand, after a Hong Kong court ordered the liquidation of giant real estate group China Evergrande.

The market remains on the brink amid Washington’s pledge to take “all necessary measures” to defend its forces following a deadly drone attack in Jordan by Iranian-backed militants, which is the first incident in which American military personnel were killed since the start of the Gaza war.