This Friday, London and US crude oil futures fell 2%. The WTI broke US$70 per barrel.
The oil futures fell this Friday and accumulated a loss of more than 7% in the weekafter data showed a slowdown in China’s economic growth and that investors digested an uncertain outlook in the Middle East.
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The Brent crude oil futures they fell 1.39 dollars, or a 1.9%, to US$73.06 the barrel, while the American West Texas Intermediate went down a 1.45 dollars, or a 2.1%, to US$69.22 a barrel.
Brent is down more than 7% this week, while WTI lost around 8%. These are the largest weekly declines since September 2, when the OPEC and the International Energy Agency They cut their global oil demand forecasts for 2024 and 2025.
Slowdown of the Chinese economy
In China, world’s largest oil importerthe economy grew in the third quarter at the slowest pace since early 2023, although September consumption and industrial production beat forecasts.
“China is key on the demand side of the equation, so it is weighing heavily on prices today,” he said. John Kilduffpartner at Again Capital in New York.
Chinese refinery production fell for the sixth consecutive monthbecause low refining margins and weak fuel consumption slowed processing.
“We cannot ignore the impact of electric vehicles in China,” he said Neil Atkinsona Paris-based independent energy analyst and former head of the IEA’s oil division.
The Electric vehicle sales in China soared 42% in August and reached the record number of more than one million vehicles.
“Positive U.S. economic data has helped ease some growth concerns, but market players continue to monitor the potential recovery in demand in China following recent stimulus measures,” he said. Hani AbuaglaSenior Market Analyst at XTB MENA.
Source: Ambito
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