Oil prices on global markets have fallen amid the slowdown of China’s economy. On the morning of June 9, Brent crude oil futures decreased by 18 cents (0.27%) to reach $66.29 per barrel, while WTI crude oil prices dropped by 15 cents (0.23%) to $64.43 per barrel.
This is reported by Finway
Factors Influencing Oil Prices
The primary factor behind the decline in commodity prices was the slowing growth rate of China’s economy. In May, China’s exports grew at the slowest pace in the last three months, attributed to tariffs imposed by the United States. At the same time, factory gate prices in China fell to their lowest level in the past two years, negatively impacting not only the Chinese economy but also global markets.
Additionally, crude oil imports to China in May decreased to the lowest daily volume in four months. This was due to extensive planned maintenance at the country’s oil refineries.
Maintaining Positive Dynamics Despite the Decline
Despite the temporary drop in prices, oil quotations retained a significant portion of the gains made during the previous week. The main reason for this was that investors closely monitored the progress of trade negotiations between the U.S. and China, hoping for improved economic prospects and increased demand for oil.
“The prospect of a deal between China and the U.S. could support economic growth and increase demand for oil. This has outweighed concerns about increased supplies from OPEC+ (a coalition of member countries of the Organization of the Petroleum Exporting Countries and oil-producing countries that are not members but cooperate with it),” analysts said.