Crude prices decline as there are concerns about China’s economic growth.
Crude prices decline as concerns over China’s economy are worrying the world. JPMorgan Chase and Barclays have revealed China’s 2023 GDP forecast.
According to Barchart, crude prices decline to a 1-½ week low. Crude is currently under pressure as JPMorgan Chase released their 2023 GDP forecast for China, from a 6.4% estimate last May it dropped to a 4.8%.
Crude prices decline last Wednesday despite the weekly EIA crude inventories falling more than what was expected. There are concerns that China’s slowing economy will undercut its demand for energy and that it’s a factor for crude prices decline.
China’s July crude import fell negative 19 percent m/m to 10.33 million bdp, the smallest volume in the last six months. Crude prices decline, as India’s demand for crude is slowing, it fell a negative 1.3% y/y to 19,7 MMT, which was the lowest in 7 months.
Higher interest rates increase the borrowing cost for businesses and consumers, which is a factor for slowing economic growth and reducing oil demand.
Crude prices decline on Thursday after falling for the past three sessions, with grim worries that China’s slowing growth and the possibility of US interest rate hike will weaken the fuel demand of the world’s two biggest economies.
Crude price decline as Beijing’s cut in their key policy rate was not sufficient to rejuvenate their country’s post-pandemic recovery. High interest rates will reduce oil demand and that could affect as crude prices decline.