2023-08-15 10:41:52
Oil prices continued their small decline on Tuesday following the publication in China of a series of disappointing economic indicators for the month of July, rekindling investor fears regarding the country’s demand.
Around 10:20 a.m. GMT (12:20 p.m. in Paris), a barrel of Brent from the North Sea, for delivery in October, lost 0.51% to 85.77 dollars, following having already dropped 0.7% the day before.
Its American equivalent, a barrel of West Texas Intermediate (WTI), for delivery in September, yielded 0.68% to 81.96 dollars, following a decline of 0.8% the day before.
“Disappointing key figures from China” lead to a small decline in prices, note analysts at Energi Danmark.
As China is the world’s largest importer of rough, the health of its economy is indeed a major driver of demand.
Chinese retail sales, the main indicator of household consumption, rose only 2.5% year on year last month, according to official figures from the National Bureau of Statistics (NBS).
This figure lower than expected by analysts is a new sign of sluggish consumption in the country.
Industrial production also slowed in July (+3.7% over one year), once morest 4.4% a month earlier.
After this series of disappointing indicators, China even suspended the monthly publication of its detailed youth unemployment figures on Tuesday, following a record level in recent months.
“China is not coming to the rescue (of oil prices) anytime soon,” said John Evans of PVM Energy, insisting on its “gloomy” economic situation.
The day before, the fall on the stock market of the developer Country Garden, one of the largest real estate groups in China, had already revived investors’ concerns regarding the economic health of the country in the grip of a real estate crisis of unprecedented magnitude.
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