Illustration. (CNN Indonesia / Agus Triyono)

Chinese Economy Weakens, World Oil Prices Decline More Than 1%

Estella Claudia
Market & Investment
Export Import
Jun 19, 2019
2706
USA - According to Reuters, the price of Brent crude oil futures dropped USD 1.07 or 1.73 percent to USD 60.94 per barrel. The price of US West Texas Intermediate (WTI) crude oil also experienced the weakening until USD 0.58 or 1.1 percent to USD 51.93 per barrel on Tuesday (6/18).
Bank of America Merrill Lynch also lowered the Brent price projection from USD 68 per barrel to USD 63 per barrel.

Unfortunately, The National Bureau of Statistics of China on Friday (14/6), released data on unexpected industrial output growth slowing to the lowest level for more than 17 years. The growth in May 2019 was only 5 percent, below analyst expectations of 5.5 percent and lower than April's realization of 5.4 percent.
The release of China's worst economic data concerned the global oil demand that it will decline in next several months. It is reported that oil prices have fallen by around 20 percent since the highest in April 2019, largely due to concern of the US-China trading war and disappointing economic data.

However, in the US, reports on monthly drilling activity The US Energy Information Administration (EIA) stated that, domestic oil productions from 7 major shale oil fields are estimated to rise by around 70 thousand bpd to 8.52 million bpd on July.
It confirmed that US President Donald Trump and Chinese President Xi Jinping will meet at the G20 meeting at the end of this month to talk about the trading war issue. Price Futures Group analyst Phil Flynn also said that, all major reporting demand parties will be weakened as well during this high oil prices issue.

Source: https://www.cnnindonesia.com/ekonomi/20190618070024-85-404105/harga-minyak-tertekan-data-ekonomi-china

Chinese , Economy , World , Oil