Oil Prices Hit By Slower Demand Growth In China

Oil futures fell slightly on Tuesday due to predictions of slower oil demand growth in China, the world's second-largest oil consumer, and disappointment with the size of cuts in China's key lending rates. Increased crude supplies from Iran and Russia also fueled the bearish market sentiment. However, the decline in oil prices was limited by expectations that oil demand would rise in China and India in the second half of the year. India's booming aviation sector is expected to contribute to overall demand growth. Despite forecasts for less growth in oil demand, consumption in China and India is still expected to rise in the coming months.