Oil Prices Retreat Amid Weak Chinese Data And Anticipation Of U.S. Interest Rate Cuts
Oil Prices Retreat Amid Weak Chinese Data And Anticipation Of U.S. Interest Rate Cuts . (MENAFN - The Rio Times) Oil prices experienced a decline on December 16, following a week of gains. This drop stemmed from disappointing economic indicators in China and growing speculation about ...
América - MenaFN
(MENAFN- The Rio Times) Oil prices experienced a decline on December 16, following a week of gains. This drop stemmed from disappointing economic indicators in China and growing speculation about potential interest rate cuts in the United States.



Brent oil futures for February 2025 closed at $73.91 per barrel. This reflected a modest increase of 0.78% on the Intercontinental Exchange in London.



In contrast, West Texas Intermediate (WTI) crude for January fell by 0.81%, settling at $70.71 per barrel on the New York Mercantile Exchange. The recent downturn in oil prices can be attributed to weaker-than-expected economic data from China.



The National Bureau of Statistics reported that China's industrial production rose by 5.4% in November compared to the previous year. This slightly exceeded the anticipated growth of 5.3%.



However, retail sales, a key indicator of consumer spending, grew at their slowest pace in three months, increasing by only 3.0%. This figure was significantly lower than October's 4.8% rise and below analysts' expectations of a 4.6% increase.







These mixed economic signals have heightened market concerns about the impact of upcoming U.S. tariffs on Chinese goods. The tariffs are set to take effect next year under the Trump administration's policies.

Global Economic Dynamics

Moreover, investors are closely monitoring the Federal Reserve 's upcoming monetary policy meeting. The Federal Open Market Committee (FOMC) is scheduled to convene over the next two days.



Many analysts predict a 25 basis point cut to interest rates, bringing them to a range of 4.25% to 4.50% per annum by Wednesday, December 18. Lower interest rates could potentially stimulate economic growth and increase oil demand.



Last week, oil prices had risen due to expectations of reduced supply resulting from additional sanctions on Russian and Iranian oil producers, alongside hopes that lower interest rates in both the U.S. and Europe would boost demand.



As the market navigates these developments, the interplay between global economic indicators and domestic monetary policy remains critical. This interaction will be key in determining future oil price trends.

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2024-12-16
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(MENAFN - The Rio Times) Oil prices experienced a decline on December 16, following a week of gains. This drop stemmed from disappointing economic indicators in China and growing speculation about ...
Oil Prices Retreat Amid Weak Chinese Data And Anticipation Of U.S. Interest Rate Cuts