WTI Oil Closes $1.58 on China Economic Slowdown, US-China Dispute : InfoQuest

2023-08-11 00:04:56

Editor’s Picks, Economic News6:52pm2023-08-11

New York West Texas Intermediate (WTI) crude futures closed Thursday (Aug. 10) as investors worried regarding a slowdown in the Chinese economy. and disputes between China and the United States.

The WTI crude oil contract is delivered in September. It was down $1.58, or 1.9%, at $82.82/barrel. The Brent crude oil contract (BRENT) is delivered in October. It was down $1.15, or 1.3%, at $86.40/barrel.

Chinese authorities released consistently weak economic data. The Consumer Price Index (CPI), which measures inflation on consumer spending, fell 0.3 percent in July from a year earlier. This was the first drop since February. The producer price index (PPI), which measures costs for goods at the factory gate, fell 4.4 percent in July year on year. That was lower than the 4.1 percent decline expected by analysts.

The data signaled that China was at risk of deflation. And as a result, the market is worried that oil demand in China is slowing down as well.

The market is also concerned regarding the US-China technology dispute. After President Joe Biden signed an investment control order in China. This includes investing in the semiconductor industry. and microelectronics quantum computer and artificial intelligence (AI). The order has angered the Chinese government.

Concerns regarding China’s economic outlook have overshadowed positive hopes that the Federal Reserve is nearing an end to its rate-raising cycle. After the US released the headline CPI, which includes food and energy, rose 3.2% in July year over year. This was lower than analysts’ expectations of 3.3%.

By InfoQuest News Agency (11 Aug. 23)

Tags: WTI, WTI oil, oil price
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