Concerns have grown among market participants about economic problems in China, the world’s largest oil importer.
World oil prices fell sharply on weak economic data from China and broke through the psychological level of $70 per barrel. This happened for the first time since December 2021, according to trading results on Tuesday, September 10.
Thus, quotes for November futures for Brent on the London ICEFutures exchange fell by $2.76 (-3.84%) to $69.08 per barrel.
The price of WTI oil futures for October in electronic trading on the New York Mercantile Exchange (NYMEX) fell by $2.88 (-4.19%) to $65.83 per barrel.
The previous day, the price of Brent rose by 1.1%, WTI – by 1.5%.
The General Administration of Customs of the People’s Republic of China reported that China’s exports increased in August by 8.7% year-on-year at a record pace since March 2023. Meanwhile, import growth slowed to 0.5 % from 7.2% in July, raising concerns about the economic problems of the world’s largest oil importer.
“The export data is positive, but the import numbers are worrying about further weakness in domestic demand in China,” said Commerzbank analysts Karst Fritsch and Barbara Lambrecht.
Traders are also monitoring hurricane activity in the Gulf of Mexico. The US National Hurricane Center (NHC) reported yesterday the formation of Tropical Storm Francine in the Gulf of Mexico, which could strengthen to a Category 2 hurricane by midweek. A severe storm warning has been issued for the Louisiana coast.
We remind you that Citi Research analysts believe that the price of oil may drop to $60 per barrel by 2025. The main factor they point to is a significant surplus in the market.
Source: korrespondent
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