Oil prices have been falling since Thursday trading (8/15). (Credit : ANTARA)

China's economic data has worsened, oil prices have dropped 3%

Siti Fatimah Adri
Politics & Economic
International
Aug 16, 2019
2247
Oil prices have been falling since Thursday trading (8/15). The fall in oil prices occurred because the market worried about economic recession and an increase in crude oil inventories in the United States (US). In addition, deteriorating Chinese economic data has made markets worry again about slowing oil demand.

China publishes growth in industrial output as of July 2019 by only 4.8 percent. That figure is far from the estimated number of parties reaching 6 percent. The data is the lowest in 17 years. This fact reinforces that the Chinese economy was hit hard by the trade war with the US.

Meanwhile, Market Analyst at OANDA Craig Erlam said that the price of oil was hit again due to the risks that emerged.

Quoting from Reuters, the price of Brent oil futures dropped 3 percent to US $ 57.67 per barrel, US West Texas Intermediate (WTI) oil prices fell 1.4 percent to US $ 54.48 per barrel.

Oil demand has potential to further slow down due to market concerns over economic recession and China threatening to reciprocate tariffs to US.

Despite weakening in daily trading, Brent price rose 10 percent this year. This is due to the decision to reduce production from the Organization of Petroleum Exporting Countries (OPEC).

In July, OPEC approved an extension to reduce oil production until March 2020 in order to raise prices. The Saudi official also said it would also take steps to stabilize oil prices.

Source: https://www.cnnindonesia.com/ekonomi/20190816065855-85-421787/harga-minyak-anjlok-3-persen