Oil slides on worries on China, IMF slow-growth expectations

Oil slides on worries on China, IMF slow-growth expectations

Dubai: Oil prices slid on Tuesday from their highest levels in a month after Chinese economic data dampened market sentiment and the head of the International Monetary Fund warned of a tougher 2023. Brent crude futures had fallen by 25 cents, or 0.29 per cent, to $85.66 a barrel by 0400 GMT, while US West Texas Intermediate crude was at $80.06 a barrel, down 20 cents, or 0.25 per cent. Weaker factory data from China, the world’s largest crude importer and second-largest oil consumer, weighed on prices. The Caixin/Markit manufacturing purchasing managers’ index fell to 49.0 in December from 49.4 in November. The index has stayed below the 50-point mark that separates growth from contraction for five straight months. Yet there was a return to regular activity in China on Monday, as some people in key cities braved the cold and a rise in Covid infections, raising the prospect of a boost to the economy and oil demand as more recover from infection. “The market cannot expect a rapid recovery of the Chinese economy after three years of (pandemic controls), the mass bankruptcy of small and medium-sized enterprises, the soaring unemployment rate, the rapid increase in the social savings rate,