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Oil markets dive as China’s record low raises concerns

Oil markets dive as China’s record low raises concerns
Photo Credit: Arabianeye-Reuters

By: Mahmoud Gamal

Kuwait – Mubasher: Global oil prices suffered declines at the closing of Monday’s session, stung by oversupply and Chinese sinking stocks.

Brent crude fell 2.1% or $1.15 to $53.47 per barrel (pb), while US crude retreated $0.75 or 1.56% to $47.30 pb.

Yesterday’s session was mainly pressured by fears regarding the China’s slowing growth, following a record drop in its stocks during the session, economic analyst Ahmed Hassan Karam told Mubasher.

Chinese stocks plunged by more than 8% on Monday to an eight-year low.

China is the largest energy consumer in the world and a major oil importer, said Karam, adding that investors fear a market crash that would destabilise the Chinese economy and reduce oil demand.

Weekly US exploration data showed on Friday the addition of 21 explorers, the highest level since April 2014. This forecasts an increase in US oil production, presenting pressure on oil prices.

Gold prices retreated 0.6% to $1,092.36 an ounce on Monday amid expectations of an increase in US interest.

The Federal Reserve (US Central Bank) is scheduled to hold a two-day meeting this week.

 

Translated by: Nada Adel Sobhi