Oil prices under pressure after news from China and Russia
On Monday morning, oil prices have fell after the publication of the China GDP forecast on its slowing growth. The growing investors doubts about Russia’s compliance of the OPEC production cuts has also affected the reduction of the “black gold” cost. As a result, the Brent oil fell by $ 55.61, and the WTI contracts decreased by $53,02.
According to analysts, the GDP growth slowdown and a tightening of state regulation in China may reduce the oil and petroleum products demand. According to the Chinese authorities forecast, this year the growth of the country’s economy will increase by approximately 6.5%, which is by 0.2% less than in 2016.
The statistics of the Ministry of energy of the Russian Federation, according to which the production volumes in February remained at the level of the previous month, has also affected to the oil prices decline. It means that Russia has fulfilled its obligations under the OPEC pact only by one-third.
The oil prices fall could be more significant if not the message about the tense situation in the Middle East. On Friday, militants had attacked oil ports of Es-Sider and Ras-Lanuf in Libya. It also may cause the oil supply interruptions.