Crude oil prices took a hit after weak economic data from China raised concerns about demand. China, the world’s largest crude importer, posted inflation numbers that fell more than expected. The country’s inflation went negative for the first time in 13 months, signaling persistent deflationary pressures. This downturn added to an already bearish outlook for oil. Brent And WTI Hit New Lows As a result, global oil prices fell sharply. Brent Crude traded near $70 per barrel, touching a new low since 2021. Meanwhile, WTI Crude dipped below $67 per […]
Crude Oil Prices Drop Amid Weak Chinese Data And Global Uncertainty
Crude oil prices took a hit after weak economic data from China raised concerns about demand. China, the world’s largest crude importer, posted inflation numbers that fell more than expected. The country’s inflation went negative for the first time in 13 months, signaling persistent deflationary pressures. This downturn added to an already bearish outlook for oil.
As a result, global oil prices fell sharply. Brent Crude traded near $70 per barrel, touching a new low since 2021. Meanwhile, WTI Crude dipped below $67 per barrel. The fall in prices reflects a tough global economic outlook, with China’s weakening economy contributing to the uncertain demand for oil.The broader markets also adopted a risk-off sentiment, contributing to the oil price decline. Investors are on edge as uncertainty continues to rise. Both global economic conditions and geopolitical factors have combined to push prices lower. Ongoing trade tensions, plans by OPEC and its allies to increase production, and the war in Ukraine have all contributed to the cautious mood.
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In the United States, President Donald Trump also commented on the country’s economic future. He told Fox News that the US economy is undergoing a “period of transition” after his tariff actions. His remarks added to the sense of unease in the market, with investors unsure of the long-term effects of ongoing trade conflicts.At the same time, US Federal Reserve Chair Jerome Powell addressed the growing uncertainty. Powell acknowledged the changing economic conditions but emphasized that there was no immediate need to cut interest rates. His statement offered little reassurance to investors looking for more clarity on the future economic trajectory.
The market’s bearish sentiment was further fueled by news from OPEC. Saudi Arabia, a key member of the oil cartel, lowered prices for Asia—its largest market. This was the first time in three months that the country made such a move. The decision was likely driven by the weakening demand outlook and the desire to maintain market share.
As the week begins, market participants are closely watching technical levels. Analysts are eyeing Brent’s intraday low from last week, set at $68.33. Chris Weston, head of research at Pepperstone Group, pointed out that there is a potential for Brent to fall below this level. If that happens, it could trigger more technical and forced selling, pushing prices even lower.The outlook for crude oil remains grim. Weak economic data from China, ongoing geopolitical tensions, and uncertainty surrounding US economic policy all point to continued bearish pressure on oil prices. While market participants remain cautious, the situation could worsen if further negative news emerges.
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