ANKARA, July 17 — Oil prices fell today as China’s weaker-than-expected economic growth projected a sluggish economic revival in the world’s top crude oil importer, raising concerns over its oil demand, reported Anadolu.
International benchmark Brent crude traded at US$78.94 per barrel at 10.05 am local time (0639 GMT), a 1.16 per cent loss from the closing price of US$79.87 a barrel in the previous trading session on Friday.
According to China’s National Bureau of Statistics, the country’s economy expanded by 6.3 per cent in the second quarter from a year earlier, falling short of predictions of 6.9 per cent.
Although China’s gross domestic product surpassed the 4.5 per cent rise in the first quarter, the data overshadowed hopes of recovering demand to put downward pressure on prices.
Oil prices posted a limited increase of 4 per cent last week over fears of tight supply driven by Saudi output cuts, and hopes of increased demand in the world’s largest oil consumer, the US.
Investors are awaiting the Federal Open Market Committee (FOMC) meeting on July 25-26 with hopes that the US Federal Reserve (Fed) will soon hit the brakes on interest rate hikes.
Although data released last week suggested that inflation was moderating, Fed Governor Christopher Waller said on Thursday that he was not ready to declare an end to rate hikes this year.
Despite the recent rise in the dollar index, the greenback remains lower than it was in July, encouraging trading with foreign currency holders because oil is cheaper. — Bernama-Anadolu
