Chinese Demand Concerns Weigh on Oil Prices

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Chinese Demand Concerns Weigh on Oil Prices
ChinaEconomic GrowthOil Demand
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Oil prices declined in Asian trading due to concerns about slowing Chinese economic growth and oil demand, despite a potential drop in US crude oil inventories.

Oil prices continued to be weighed down in Asian trade on Wednesday by growing concerns about China ’s economic growth and oil demand which were offsetting an estimated drop in U.S. crude oil inventories. In Asian trade, both benchmarks were dropping by around 0.2%, with the U.S. WTI Crude benchmark clawing back to the $80 per barrel handle after falling to $79.50 earlier on Wednesday. The international benchmark, Brent Crude , had dropped to about $83.

7% in the second quarter, below expectations of 5.1%. Retail sales in June were also weaker than anticipated. Moreover, refinery output in the world’s top crude oil importer dropped by 3.7% in June compared to the same month last year, amid tepid fuel demand and weakening refining margins, which prompted independent refiners to slash crude processing rates.

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