2024-01-17 16:27:28
Noha Makram – Live – Oil prices fell by more than a dollar on Wednesday, with disappointing economic growth in China, raising concerns about the future of demand, while the strength of the dollar limited investors’ risk appetite.
Brent crude fell by $1.38, or 1.8%, to $76.91 per barrel, at 14:28 GMT, and West Texas Intermediate crude futures fell by $1.35, or 1.9%, to $71.05.
Archyde.com reported that air and sea attacks in the Red Sea are not enough to boost oil prices, despite growing concerns about ships temporarily stopping transit or changing their course, which increases shipping costs and slows deliveries.
Data issued by the Chinese National Bureau of Statistics showed that gross domestic product grew by 5.2% during 2023, which is its slowest pace in more than three decades, in light of the real estate crisis, slowdown in consumption, and global unrest.
Although the data was in line with expectations, even exceeding Beijing’s target, it is likely to increase new pressure on officials to unveil more stimulus measures to jump-start business activity and push the country’s consumers to spend again.
The data raised questions about expectations that Chinese demand will enhance the growth of global oil demand in 2024. Priyanka Sakdeva, chief market analyst at Philip Nova, said that the data did not end the obstacles facing demand for crude oil, noting that Chinese expectations for 2024 and 2025 do not Still bleak.
Moreover, the dollar recorded its highest levels in a month against a basket of currencies, on Wednesday, with the safe-haven currency gaining against the backdrop of sentiment being damaged by weak Chinese data and policymakers around the world refuting the imminent cut in interest rates.
The dollar index rose to 103.58, its highest level since December 13, continuing its gains after jumping by 0.67% yesterday, Tuesday.
It is worth noting that the strength of the dollar limits the demand of holders of other currencies for oil denominated in the US currency.
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