Oil fell towards $74 a barrel on Tuesday after China implemented a clampdown on lending, rekindling concern that tightening moves by the world's second-largest oil user may limit demand.
Crude approached a one-month low after the Chinese move, which analysts said was a setback for the bullish view in oil markets that puts the prospect of rising Asian demand ahead of the market's weak current fundamentals.
"The fundamental link to current prices is weak—hence oil prices need at least some general optimism that boom times are around the corner," said Olivier Jakob, analyst at Petromatrix.
"That general optimism depends a lot on China's consumption, saving the rest of the world and that will be somewhat challenged by the Chinese government trying to regulate the formation of bubbles."
US oil was down 76 cents at $74.50 by 1206 GMT, having traded as low as $74.14. On Friday, it touched a one-month intraday low of $74.01. Brent crude fell 65 cents to $73.04.
Source & Full Article Economic Times
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