Oil prices fell to a multi-month low on Monday after signs that China’s economy was faltering.
The price of US benchmark West Texas Intermediate crude fell more than 5% in a day to below $88 a barrel, its lowest level since January. The price of international benchmark Brent crude fell similarly, falling below $94 a barrel, the lowest since March.
China’s economy, which had been showing signs of slowing in recent months, deteriorated further in July, according to data from China’s National Bureau of Statistics. Data released on Monday showed retail sales and industrial production fell short of expectations in the month.Surprisingly, the central bank of the country rate cut At a rate of 1 in 10, it helps strengthen the economy. This is another sign of confusion.
China’s stringent pandemic restrictions are hurting the economy and countries that depend on China for factories and consumers. Slowing economic growth in China is putting pressure on the United States, which is grappling with a possible recession, and European economies, which are reeling from Russia’s invasion of Ukraine.
More than half of the cost of gasoline is determined by oil prices. The average US gasoline price fell to his $3.965 on Monday, falling for the 62nd straight day, as oil prices fell as China’s economy slowed.