Business

Oil prices fall on concerns of global economy

Ajel News

Due to concerns about the global economy, oil prices fall and Brent Crude declined by 0.2%.

Oil prices fell on Monday on continuing concerns about the globaleconomic outlook and their impact on oil demand.

Brent crude futures fell 10 cents, or 0.2%, to $59.32 a barrel,while US crude futures fell 9 cents, or 0.2%, to $53.69 a barrel, according toReuters.

In the same context, Russia said the oil it produced last Septemberwas more than stipulated in a global agreement due to an increase in gas condensateproduction as the country prepares for the winter season.

OPEC, Russia and other producers (OPEC+) agreed in December 2018,to reduce production by 1.2 million bpd from the beginning of 2019.

On the other hand, China's economic growth slowed to 6% year-on-yearin the third quarter of this year, the weakest growth in twenty-seven and ahalf years, which is below expectations.

The slowdown in the Chinese economy was a result of falling factoryproduction and continuing trade tensions. However, refinery production in Chinaincreased by 9.4% year-on-year in September, indicating that demand for oilfrom its largest importer in the world remains strong.