Oil prices are falling on statistics from China and fears for demand

MOSCOW, Sep 1 — PRIME. World oil prices on Thursday evening accelerated the decline to 3%, investors are evaluating statistics from China and fear a decrease in demand for “black gold”, according to trading data and expert comments.

As of 18.43 Moscow time, the price of November futures for Brent crude oil falls by 2.83%, to $92.93 per barrel, October futures for WTI – by 2.76%, to $87.08. At the same time, minutes earlier, Brent and WTI fell by 3%, and in the afternoon, prices for both brands fell by 2.48%.

Earlier on Thursday, the index of business activity (PMI) in the manufacturing sector of China was published. According to business publication Caixin, the index fell to 49.5 points from July’s level of 50.4 points. The decline in the index fuels investors’ fears about the slowdown in the Chinese economy and a possible decrease in oil demand.

“The weak PMI in China’s manufacturing sector confirmed that oil demand will be affected by more unfavorable conditions in the coming days,” MarketWatch quoted Naeem Aslam, chief market analyst at AvaTrade, as saying.

In addition, coronavirus restrictions in China, the largest oil importer, have a negative impact. They reduce the demand for “black gold”, which makes oil cheaper.