Brent crude is falling due to slow economic growth in China, the world’s largest crude importer.
World oil prices are falling sharply due to market participants’ concerns about the prospects for demand for “black gold.” This was confirmed by the trading data on Tuesday, September 3.
Thus, the value of November futures for Brent on the London ICE Futures exchange decreased by $1.80 (2.32%) to $75.72.
In turn, WTI oil futures for October in electronic trading on the New York Mercantile Exchange (NYMEX) lost $1.19 (1.62%) in price and cost $72.36 per barrel.
According to Reuters, Brent prices are falling due to slow economic growth in China, the world’s largest crude oil importer. That raised concerns about demand, covering the impact of halting production and exports from Libya.
It indicates that China’s Purchasing Managers’ Index (PMI) hit a six-month low in August. The country reported a decline in new export orders in July for the first time in eight months, and new home prices rose at their slowest pace this year in August.
However, in Libya, oil exports to the main ports were suspended on Monday, and production throughout the country was reduced. The country remains in a standoff between rival political groups over control of the central bank and oil revenues.
Also in the focus of traders’ attention this week is a report on the state of the US labor market for August. The data will be released on Friday, and analysts polled by Trading Economics forecast it would show unemployment falling to 4.2% from 4.3% and job growth accelerating to 165,000 from 114,000.
The weak July report, on the one hand, increased fears of a slowdown in American economic growth, and on the other hand, increased the possibility of a rapid interest rate cut by the US Federal Reserve.
Earlier it became known that Russia classified diesel fuel production statistics. This happened after a series of fires in oil depots and oil refineries.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.