The energy crisis in Europe began after the application of sanctions against Russia, which is causing significant damage to its economy.
In the same line as the gas, oil prices fell more than 4 dollars per barrel this Monday on demand fears, after disappointing economic data from China renewed concerns of a global recession.
Brent crude futures were down $4.75, or 4.8%, at $93.40 a barrel after falling 1.5 percent on Friday. US West Texas Intermediate futures were down $4.52, or 4.91%, at $87.57 a barrel, after falling 2.4% in the previous session.
The central bank of China, the world’s biggest crude importer, cut interest rates on loans to revive demand, at a time when data showed the economy unexpectedly slowed in July, with industrial and retail activity stifled by Beijing’s zero COVID policy and a housing crisis.
The country’s refinery output fell to 12.53 million barrels per day (bpd), its lowest level since March 2020, according to government data.
ING bank cut its forecast for China’s GDP growth in 2022 to 4%, down from a previous projection of 4.4%, and warned that a further downgrade is possible.
Meanwhile, the US dollar index rose to near the middle of its range this month. Oil is generally priced in dollars, so a stronger US currency makes the product more expensive for holders of other currencies.
Source: Ambito
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