Oil Prices Tumble as Market Reacts to Rate Cut Speculations and China's Demand Concerns

Oil prices fell for a fifth consecutive day amidst uncertainties about demand. Stocks in Asia remained subdued, while the U.S. dollar neared one-year lows. The Federal Reserve's minutes indicate impending interest rate cuts. These market shifts highlight broader concerns about U.S. economic slowdown and weak Chinese demand.

Oil prices tumbled for the fifth consecutive day on Thursday, driven by demand uncertainties. Asian stocks remained subdued, and the U.S. dollar lingered near one-year lows as Federal Reserve minutes signaled imminent interest rate cuts. The minutes confirmed market bets on a rate cut next month, noting that a 'vast majority' of policymakers expected a September cut if data align with forecasts.

Brent futures traded at $75.97 a barrel, nearing the year's low and down nearly 6% for August amid weakening demand from China and the anticipation of U.S. economic slowdown. Both U.S. and European futures dipped by about 0.1%, while the MSCI's broadest index of Asia-Pacific shares outside Japan remained largely flat.

In China, trade was light, with minimal losses on major indexes. Hong Kong's Hang Seng index climbed 0.5%, buoyed by an 8% uptick in electronics maker Xiaomi's shares. Meanwhile, Japanese equities hit a three-week high, supported by gains in pharmaceutical stocks Sumitomo Pharma and Chugai Pharm.

(With inputs from agencies.)