Fears regarding China’s growth are increased by the country’s declining industry activity.
(Reuters) – LONDON, May 2 (Reuters) – On Monday. Oil prices dropped as concerns about slowing economic growth in China. The world’s top oil importer, overshadowed fears of supply disruptions from a possible European Union ban on Russian crude.
At 0801 GMT, Brent crude prices were down 71 cents, or 0.6 percent, to $106.43 a barrel. While WTI crude futures were down 70 cents, or 0.6 percent, to $103.99 a barrel.
Markets in Japan, India, and Southeast Asia were closed on Monday, due to official holidays.
Prices dropped after China revealed data on Saturday showing that factory output in the world’s second-largest economy decline for the second month in a row, to its lowest level since February 2020, due to COVID restrictions.
“A slowdown of that magnitude, at a time when China is already suffering from a property bubble. This heightened regulation, could be a huge issue for commodity markets and the global economy,” Tobin Gorey, a Commonwealth Bank commodities analyst, wrote in a note.