E-Paper
Crude oil prices fall over Chinese inflation dip
Crude was hit by the escalating global trade war, plans by OPEC and its allies to increase production, and talks to end the three-year war in Ukraine.
Global oil prices fell after weak economic data from China resulted in a tough outlook for demand, and also wider markets carried a risk-off tone.
Brent Crude traded close to $70 a barrel after touching a new low since 2021 last week, while WTI Crude was below $67, according to a Bloomberg report.
Also Read: Ola Electric stores see raids, seizures for allegedly not having trade certificates: Report
This came amid China, the biggest crude importer, posting inflation numbers which fell more than expected, going below zero for the first time in 13 months, showcasing persistent deflationary pressures.
Another factor is that in the US, President Donald Trump told Fox News that the economy is facing a “period of transition” after his tariff actions.
US Federal Reserve Chair Jerome Powell on Friday, also acknowledged the rise in uncertainty, though he emphasised there was no need to rush and cut rates.
As a result, crude was hit by multiple bearish factors, such as the escalating global trade war, plans by OPEC and its allies to increase production, and talks to end the three-year war in Ukraine, according to the report.
Also Read: Trump's tariffs on India may be good news, says ex-RBI deputy governor: Report
“Asia starts the week on a cautious tone, with crude working in sympathy to the move lower” in wider markets, the report quoted Chris Weston, head of research at Pepperstone Group as saying.
He added that the potential for Brent going below $68.33 a barrel (last week’s intraday low) continued to remain in focus, with “the possibility the floor gives way and we see technical and forced selling.”
Due to the weakening outlook, Saudi Arabia on Friday had cut prices for Asia, its largest market, for the first time in three months, the report read.
Also Read: How layoffs are forcing older American professionals to take up blue-collar jobs
This came after OPEC unexpectedly agreed to add supply from April after multiple delays, according to the report.
