Oil Falls Amid China Growth Uncertainties

Date: 19 June 2023 - 22:05

News ID: ۱۱۶۲۸۰

LONDON (Reuters) - Oil prices eased on Monday as questions over China’s economy outweighed OPEC+ output cuts and the seventh straight drop in the number of oil and gas rigs operating in the United States.

Brent crude fell 17 cents, or 0.2%, to $76.44 a barrel by 1319 GMT while U.S. West Texas Intermediate (WTI) crude lost 27 cents, or 0.4%, to $71.51.

Both contracts ended last week with gains of more than 2%.

“(China’s) economy is navigating through powerful headwinds,” said PVM oil analyst Tamas Varga. “The property market has not healed from last year’s slump, and in May both retail sales and industrial output came in below expectation.”

A number of large banks have cut their forecasts for China’s 2023 growth in gross domestic product after May data last week showed the post-COVID recovery in the world’s second-largest economy was faltering.

China is widely expected to cut its benchmark loan rates on Tuesday after a similar reduction in medium-term policy loans last week to shore up a shaky economic recovery.

Sources have told Reuters that China will roll out more stimulus for its slowing economy this year, but concern over debt and capital flight will keep the measures targeted on the consumer and private sectors.