Oil prices retreat on China slowdown

AFP, LONDON: Oil prices fell yesterday on data revealing that China’s economy posted its slowest growth for more than six years, reinforcing concerns about weak demand from the world’s top energy consumer.
US benchmark West Texas Intermediate for delivery in November dropped 53 cents to $46.73 a barrel compared with Friday’s close.
Brent North Sea crude for December delivery shed 74 cents to stand at $49.72 a barrel in London early afternoon deals.
China, the world’s second biggest economy after the United States, said its gross domestic product (GDP) rose 6.9 per cent in the three months to September, beating market forecasts but still the worst since the global financial crisis in 2009. Growth in China’s industrial production, which measures output at factories, workshops and mines, also dropped sharply to 5.7 per cent year-on-year in September, the government said.
“Although China’s retail sales turned out strong, industrial-related data remained weak. This would likely be weighing down on commodity usage in China,” Daniel Ang, an investment analyst with Phillip Futures in Singapore, said in a market commentary. “With weak Chinese industrial production, we may see Chinese manufacturing PMI worsen, thus leading to weaker oil prices,” he said, referring to the forward-looking Purchasing Managers’ Index to be released later this week

Oil prices retreat on China slowdown

AFP, LONDON: Oil prices fell yesterday on data revealing that Chinas economy posted its slowest growth for more than six years, reinforcing concerns about weak demand from the worlds top energy consumer. US benchmark West Texas Intermediate for delivery in November dropped 53 cents to $46.73 a barrel compared with Fridays close. Brent North Sea crude for December delivery shed 74 cents to stand at $49.72 a barrel in London early afternoon deals. China, the worlds second biggest economy after the United States, said its gross domestic product (GDP) rose 6.9 per cent in the three months to September, beating market forecasts but still the worst since the global financial crisis in 2009. Growth in Chinas industrial production, which measures output at factories, workshops and mines, also dropped sharply to 5.7 per cent year-on-year in September, the government said. Although Chinas retail sales turned out strong, industrial-related data remained weak. This would likely be weighing down on commodity usage in China, Daniel Ang, an investment analyst with Phillip Futures in Singapore, said in a market commentary. With weak Chinese industrial production, we may see Chinese manufacturing PMI worsen, thus leading to weaker oil prices, he said, referring to the forward-looking Purchasing Managers Index to be released later this week