Brent and US crude: Oil prices fall amid anxiety over China’s economic slowdown
Oil prices careered lower today, as anxiety over the pace of China's economic slowdown dented the outlook for demand.
Brent crude, the global benchmark, fell 2.7 per cent to $32.63 per barrel today, while West Texas Intermediate crude, the US benchmark, slumped 2.1 per cent at $32.47.
It comes after oil prices shed around 10 per cent last week, amid stock market turbulence sparked by a slide in the yuan and two emergency suspensions in Chinese stock market trading.
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"China macro trends remain in the driving seat for commodities," Singapore Exchange said today.
"With a slowing domestic economy, mounting deflationary pressures, rising capital outflows, growing credit risks, a continued nationwide anti-corruption drive and rising US interest rates, there is perhaps plenty of scope for volatility to stage a return."
Oil prices have fallen around 70 per cent since mid-2014 due to the widening gap between supply and demand. The slowdown in China, where growth has dropped to its lowest rate in a generation, has exacerbated this.