On January 22, Tuesday, oil prices slipped more than 1% after signs of economic slowdown in China became evident. This concern caused a ripple effect, casting a shadow of doubt on the demand for fuel and global growth.
On Tuesday morning Greenwich Mean Time, International Brent oil futures fell 1.28% to $61.94 a barrel, while US West Texas Intermediate (WTI) crude futures slipped 1.19% to $53.16 a barrel.
This came just a week after reports that China’s economy might slow to 6.3% in 2019 due to weakening domestic demand. The US tariffs added to the Asian countries woes. This expected growth of the Chinese economy would be the lowest in 2018.
The economy was expected to grow 6.6% in 2018, while it grew 6.9% in 2017.
With talks between the US and China resuming, many have been optimistic about a further suspension in planned tariff hikes which was expected this month.
Analysts also say that with domestic headwinds remaining strong, the economy is expected to soften further. In the fourth quarter of 2018, growth fell to 6.4%. It was 6.8% in the first quarter.
However, the world’s foremost exporter of oil Saudi Arabia on Monday announced that its November crude oil exports jumped to 8.235 million bpd from 7.700 million a month ago. This is an indication os no supply shortage in some markets.