Oil Price Falls on Growing Concerns Over China

• Oil Price Falls on Growing Concerns Over China

Global oil price dropped on Tuesday after data showed slowing growth in China, the world’s largest importer of crude oil.

The economic number released on Monday showed Chinese economic growth dipped to 6.6 per cent in 2018, the lowest growth in 28 years. Same as predicted by analysts following the ongoing trade war with the U.S., its largest trading partner. The fourth quarter growth stood at 6.4 per cent.

“What we’re seeing in the fourth quarter is that, while the economy is decelerating, we actually still have some support from most of the quarters from the export front-loading,” said Helen Zhu, head of China equities at BlackRock, referring to exporters rushing to ship their goods out of China before new U.S. tariffs hit.

Brent crude, against which Nigerian oil is measured, declined by 1.6 per cent during the London trading session.

“Oil prices are slightly down from yesterday along with concerns of Chinese growth slowdown, which could affect oil consumption,” said Michael Poulsen, an analyst at Global Risk Management Ltd.