Oil prices fell today due to a decline in global commodity and stock markets, with worries about a slowing Chinese economy overshadowing the impact of decreasing U.S. inventories.

Brent crude dropped to around USD 81 per barrel after a 0.9% rise on Wednesday, while West Texas Intermediate (WTI) stabilized near USD 77.

Despite Beijing's interest rate cut on Thursday, concerns about the Chinese economy's impact on oil demand persist. Other markets, including stocks and commodities like copper, also saw significant declines.

In a surprising move, the People's Bank of China slashed the one-year loan prime rate by the largest margin since April 2020 to stimulate the slowing economy.

This dip in crude oil prices follows record highs earlier this month, driven by weak demand forecasts in Asia's largest economy. This trend contrasts with the effects of OPEC+ production cuts and expectations of U.S. interest rate reductions.

Global financial markets experienced broad declines in recent hours, including a drop in the tech-heavy Nasdaq 100 index.

Tai Hui, Chief Market Strategist for Asia at JP Morgan Asset Management in Hong Kong, commented, "Given the recent correction in the Nasdaq and some disappointing earnings reports, there appears to be significant risk aversion," negatively impacting oil prices. He added that weaker-than-expected economic data, particularly from China, also affects demand outlooks.

China's crude oil imports fell by 2.3% in the first half of this year compared to the same period in 2023. The price spreads between different futures contracts have narrowed in recent sessions, indicating a smaller decline in supplies. The spread between the nearest Brent contracts was 90 cents per barrel in backwardation, down from USD 1.18 a week ago.

The U.S. reported on Wednesday that commercial oil inventories dropped by 3.74 million barrels, marking the fourth consecutive weekly decline, with gasoline and distillate stocks also shrinking.