Oil Prices Plunge To Six-Month Low As New Data Shows China Economy Unexpectedly Deteriorated Last Month

Oil Prices Plunge To Six-Month Low As New Data Shows China Economy Unexpectedly Deteriorated Last Month

Share to Linkedin Oil prices plummeted to the lowest level in months on Monday morning after worse-than-expected data from China showed its economy unexpectedly slowed last month—fueling concerns that weaker market conditions could temper oil demand and potentially spark a global recession this year. As oil prices tumble, gas prices have collapsed in tandem—falling for the 61st-straight day on ... [+] Monday. The price of West Texas Intermediate slipped more than 5% Monday to $87 per barrel—its lowest level since January—while international benchmark Brent crude also fell more than 5% to a six-month low of about $93 per barrel. The plunge came after overnight data from China showed the nation's economy slowed in July amid ongoing Covid lockdowns, property market uncertainty and global recession fears—prompting a surprise interest rate cut from the People's Bank of China to help bolster consumer demand. "It seems the reopening boost was both uninspiring and short-lived," Oanda analyst Craig Erlam said in emailed comments Monday, blaming the "very disappointing" data for the morning sell-off in commodity markets and saying the figures are a concern for oil demand—especially as China remains committed to its zero-Covid policy. With Covid cases continuing to rise in China, Erlam expects