Oil drops over 2%; Brent closes below $78

Oil deepened losses today, Aug. 19, amid ceasefire talks in the Middle East and demand concerns arising from weak Chinese economy. 

Brent crude slumped 2.55%, or $2.02, to close at $77.66 a barrel. WTI crude fell 2.95%, or $2.28, to record $74.37 per barrel. 

"Persistent concerns about slow demand in China led to a sell-off," said Hiroyuki Kikukawa, President of NS Trading, a unit of Nissan Securities, according to a Reuters report. 

Another factor was the approaching end of the peak driving season in the US, he added. 

US Secretary of State Antony Blinken said Washington's latest diplomatic efforts to achieve a ceasefire in Gaza may be the best, and called on all stakeholders to reach an agreement.