Shares of energy companies slipped as oil futures kicked off the week on a negative note after data on China’s economic growth fell short of expectations.
China reported that its economy grew 6.3% year-over-year in the second quarter, missing expectations for 7.1% growth.
Disappointment in China’s rebound following the lifting of strict Covid-19 curbs on activity has been cited as a factor keeping crude under pressure in 2023.
Natural gas prices also fell, marking a fourth consecutive day of declines and the lowest closing price since June 20.
The shale patch is shedding rigs at the fastest pace since the height of the Covid-19 pandemic despite healthy oil prices. The number of rigs drilling for oil and gas has dropped to about 670 from around 800 at the beginning of the year, with private drillers accounting for roughly 70% of the decrease, according to David Deckelbaum, an analyst at investment bank TD Cowen.