Oil prices decline on concerns over Chinese demand
16 July 2024 09:34
On Tuesday, 16 July, world oil prices showed a slight decline amid growing concerns about a slowdown in the Chinese economy and a possible reduction in energy demand. As of the morning, futures for Brent crude oil fell by 0.25% to $84.64 per barrel, while US WTI crude oil fell by 0.31% to $81.66 per barrel, according to "Komersant Ukrainian" with reference to Reuters.
The main factor affecting traders’ sentiment was data on China’s economic growth in the second quarter. The world’s second largest economy grew by only 4.7%, which was below analysts’ forecasts and raised doubts about optimistic expectations for oil demand in this country.
At the same time, expectations that the US Federal Reserve may cut interest rates as early as September are somewhat restraining the fall in oil prices. Lower borrowing costs may stimulate economic activity and support energy demand.
The tense situation in the Middle East remains an additional factor affecting the market. Attacks by Houthis on tankers in the Red Sea are forcing vessels to take longer routes, which leads to longer oil transportation times.
Market experts note that the further dynamics of oil prices will largely depend on China’s economic performance and monetary policy decisions by leading central banks. The market is closely following the news and is ready to respond to any changes in global energy demand.
Meanwhile, India is deepening its trade with Russia.
