Oil prices ease on China slowdown, in line with softer global markets
There is concern that a slowing global economy could hurt oil demand, but this should be mitigated by Opec production cuts, say analysts
London — Oil prices fell on Monday, in line with weaker stock markets after evidence that economic growth in China, the world’s second-largest crude consumer, eased in 2018. Brent crude oil futures were last down 35c on the day at $62.35 a barrel by 9.46am GMT, while US crude futures were down 23c at $53.57 a barrel. The broader financial markets were weaker after data showed China’s 2018 economic growth slowing to the weakest in 28 years, at 6.6% versus 6.8% in 2017. Although the slowdown was in line with expectations and not as sharp as some analysts had expected, the cooling of the world’s second-largest economy casts a shadow over global growth. “It remains quite likely that the trade spat with the US has played a part in this latest slowdown, but investors should also factor in that it simply isn’t possible for the Chinese economy to grow at the pace that it has over the last 10 years, in the next 10 years, as the law of diminishing returns kicks in, and the economy becomes mor...
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