# Oil slides more than $1 on China growth uncertainties Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-06-19 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Oil prices drop over $1 amid China growth concerns Meta Description: Global oil prices fell over $1 on Monday as China's economic uncertainties outweighed OPEC cuts and US rig decline. Analysis and updates by Katya URL: https://financedigest.com/oil-slides-more-than-1-on-china-growth-uncertaintieshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-06-19t005009z1lynxmpej5i00krtroptp4global-fuel-prices-spain-1736813864933-compressed.jpg) # Oil slides more than $1 on China growth uncertainties By Katya Golubkova and Emily Chow TOKYO (Reuters) -Global oil prices fell more than $1 on Monday, backing off last week’s gains, as questions over China’s economy outweighed OPEC+ output cuts and the seventh straight drop in the number of oil and gas rigs operating in the United States. Brent crude lost $1.15, or 1.5%, to trade at $75.46 a barrel by 0350 GMT, while U.S. West Texas Intermediate (WTI) crude was down $1.09, or 1.5%, to $70.69. Last week, Brent [posted a gain](https://www.financedigest.com/sterling-erases-post-boe-gains-as-omicron-weighs.html "Sterling erases post-BoE gains as Omicron weighs") of 2.4% and WTI rose 2.3%. China’s economic uncertainties may have caused the selloff after a two-day rebound in oil [markets ahead](https://www.financedigest.com/birmingham-property-market-ahead-of-the-capital-as-demand-outweighs-supply-by-15-to-1.html "Birmingham property market ahead of the Capital as demand outweighs supply by 15 to 1") of The People’s Bank of China’s (PBOC) decision on its loan prime rates (LPR) this week,” said Tina Teng, an analyst at CMC Markets. A number of major banks have cut their 2023 gross domestic product growth forecasts for China after May data last week showed the [post-COVID recovery](https://www.financedigest.com/hotel-group-accor-continues-post-covid-recovery-after-a-gorgeous-summer.html "Hotel group Accor continues post-COVID recovery after a ‘gorgeous’ summer") in the world’s second-largest economy was faltering. PBOC is widely expected to [cut its benchmark loan prime interest rates](https://www.financedigest.com/russias-2022-inflation-seen-at-13-4-more-rate-cuts-to-come-reuters-poll.html "Russia’s 2022 inflation seen at 13.4%, more rate cuts to come: Reuters poll") on Tuesday, following a similar reduction in medium-term policy loans last week to shore up a shaky economic recovery. Sources have told Reuters that [China will roll out more stimulus](https://www.financedigest.com/european-shares-rally-as-china-stimulus-lifts-recovery-hopes.html "European shares rally as China stimulus lifts recovery hopes") support for its slowing economy this year, but concerns over debt and capital flight will keep the measures targeted at shoring up weak demand in the consumer and private sectors. Still, China’s refinery throughput rose in May to its second-highest total on record, helping to boost last [week’s gains](https://www.financedigest.com/dollar-steadies-near-16-week-low-yuan-set-for-biggest-weekly-gain-since-2005.html "Dollar steadies near 16-week low, yuan set for biggest weekly gain since 2005"), and U.S. energy firms cut the number of working oil and natural gas rigs for a seventh week in a [row for the first time](https://www.financedigest.com/bita-wins-best-business-risk-profiling-solution-for-unprecedented-4th-time-in-a-row.html "BITA wins best Business Risk Profiling Solution for unprecedented 4th time in a row!") since July 2020. The oil and gas rig count, an early indicator of future output, fell by 8 to 687 in the week to June 16, [lowest since](https://www.financedigest.com/uk-unemployment-hits-lowest-since-1974-but-jobs-boom-is-fading.html "UK unemployment hits lowest since 1974 but jobs boom is fading") April 2022.. [Oil prices](https://www.financedigest.com/oil-prices-rise-as-weaker-dollar-offsets-china-covid-19-concerns.html "Oil prices rise as weaker dollar offsets China COVID-19 concerns") on Monday are also lower on expectations that the Organization of the Petroleum Exporting Countries (OPEC) and its allies including Russia, or OPEC+, will struggle to get compliance with production quotas, said Edward Moya, senior analyst at OANDA. Rosneft is suggesting the cartel of oil producers focuses on exports and not production,” Moya said, referring to comments made by Igor Sechin, head of [Russian energy](https://www.financedigest.com/russian-missiles-hit-30-of-ukraines-energy-infrastructure-in-two-days-minister.html "Russian missiles hit 30% of Ukraine’s energy infrastructure in two days – minister") major Rosneft. Speaking at an economic forum on Saturday, Sechin said it would be appropriate for OPEC+ to monitor oil export volumes as well as [production quotas due to the different sizes of each country’s domestic markets](https://www.financedigest.com/chondroitin-market-overview-analysis-by-top-players-product-segments-market-size-and-leading-key-players-2022-2029-2.html "Chondroitin Market Overview & Analysis by Top Players, Product Segments, Market Size and Leading Key Players 2022- 2029"). Earlier this month, [OPEC+ had agreed on a new oil output](https://www.financedigest.com/oil-prices-take-a-breather-opec-sticks-to-output-plans.html "Oil prices take a breather, OPEC+ sticks to output plans") deal. The group’s biggest producer [Saudi Arabia](https://www.financedigest.com/sommet-education-partners-with-kingdom-of-saudi-arabias-tourism-development-fund.html "Sommet Education partners with Kingdom of Saudi Arabia’s Tourism Development Fund") also pledged to make a deep cut to its output in July. (Reporting by Katya Golubkova in Tokyo and Emily Chow in Singapore; Editing by Tom Hogue) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---