09:04 AM EDT, 07/30/2024 (MT Newswires) -- Oil fell to a near two-month low early on Tuesday on weak China demand and flagging investor interest in the commodity.

West Texas Intermediate crude oil was last seen down US$0.62 to US$75.19 per barrel, the lowest since June 4, while September Brent crude was down US$0.69 to $79.09.

The drop comes as demand from China, the No.1 importer, remains weak as the country deals with a debt crisis for its key real-estate sector, flagging consumer demand and high youth unemployment while the ruling Communist Party has avoided expensive stimulus measures to revive demand.

"Brent crude slipped below $80 to a seven-week low as technical/momentum sellers remain in control amid concerns about demand in China while shrugging off the risk of conflict escalation in the Middle East," Saxo Bank noted

Weak investor interest is also stifling prices, with Reuters reporting that hedge funds and money managers last week sold off contracts for 103-million barrels, cutting their net positions to 380-million barrels, down from 524-million barrels on July 2.

The drop also comes ahead of Thursday's OPEC meeting, which is expected to end with no changes to 2.2-million barrels per day of voluntary production cuts in place as the cartel looks to continue supporting prices despite light demand.