Arab Today, arab today oil sinks as china fears roil markets
Last Updated : GMT 08:53:10
Arab Today, arab today
Arab Today, arab today

Oil sinks as China fears roil markets

Arab Today, arab today

Arab Today, arab today Oil sinks as China fears roil markets

Crude oil prices
New York - AFP

Crude oil prices sank Monday after a plunge in Chinese equities raised fresh fears about China's faltering economy, the largest consumer of energy, and its impact on the global economy.

The Shanghai stock market's 8.5 percent dive Monday, its steepest in eight years, roiled markets worldwide, hammering stocks, the dollar and commodities.

Oil prices struck new six-year lows in the sell-off as concerns mounted about demand in China, the world's second-largest economy and consumer of crude oil after the United States.

"The petroleum markets are extending last week's decline along with global equity markets on Monday as worries over slowing Chinese economic growth intensified," said Tim Evans, energy markets strategist at Citi Futures.

"The drop in prices is also sparking some bargain hunting that has helped trim losses, but it's far from clear that a bottom is at hand."

Around 1530 GMT, US benchmark West Texas Intermediate (WTI) for October delivery was down $1.82 at $38.63 a barrel, striking a level last seen in February 2009.

Brent North Sea crude for October, the international benchmark, plummeted $2.18 to $43.28 a barrel in London, its lowest level since March of that year.

"For the first time since March 2009, Brent costs less than $45 per barrel and WTI less than $40 per barrel," said Commerzbank analysts in a research note to clients.

"There is no end in sight to the nosedive that oil prices have been experiencing for eight weeks now. As far as today's price slide is concerned at least, fundamental data play only a subordinate role, as concerns about China are chiefly responsible this time."

Bart Melek, head of commodity strategy at TD Securities, said the oil market was getting clobbered from two sides: The outlook for demand was weakened by China's woes and there was no sign of easing in the global oversupply.

"We continue to be worried about new Iranian supplies, US drilling activity increasing, maintenance season coming up for refineries... that basically prompts people to think the oil market is going to be oversupplied for longer," said Melek.

On Friday, WTI had plunged briefly below $40 on the back of a global equities sell-off spurred by poor Chinese manufacturing data.

Amid market turmoil over China's faltering economy, WTI shed 4.8 percent last week and Brent slumped 7.3 percent.

It was WTI's eighth consecutive weekly decline, the longest stretch of weekly losses in 29 years, and Brent's seventh loss in eight weeks.

"China's financial crisis has rattled global equity and commodity markets," said Myrto Sokou, senior research analyst at the Sucden Financial brokerage in London.

"Oil investors remain highly cautious following renewed worries over a serious slowdown of Asian oil demand in the second half of 2015," she said.

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today oil sinks as china fears roil markets Arab Today, arab today oil sinks as china fears roil markets

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today oil sinks as china fears roil markets Arab Today, arab today oil sinks as china fears roil markets

 



Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Zainab Fadel Oglu designs “Shakerin” mosque

GMT 12:13 2017 Thursday ,11 May

Zainab Fadel Oglu designs “Shakerin” mosque
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Mozambique's gas boom dream under threat

GMT 16:29 2017 Monday ,08 May

Mozambique's gas boom dream under threat
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Jaguar displays XF Sportbrake line

GMT 14:36 2017 Monday ,08 May

Jaguar displays XF Sportbrake line
Arab Today, arab today BMW sees forecasts in reach

GMT 09:04 2017 Thursday ,04 May

BMW sees forecasts in reach
Arab Today, arab today Climate science: Bad news gets worse

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday