Jakarta –
World oil prices fell. One of the triggers is concern regarding China’s economic growth which is predicted to slow down.
Quoted from Reuters, Monday (2/5/2022), the price of Brent crude oil was recorded at US$ 105.93 per barrel, down 1.1%. Then the price of US West Texas Intermediate (WTI) was recorded at US$ 103.7 per barrel, down 1%.
The price decline occurred after China released data on a contraction in factory production activity in China, even the lowest since the lockdown in February 2020.
Commonwealth Bank analyst Tobin Gorey in his notes said the decline in China’s economic performance has the potential to shake commodity markets and the global economy.
Libya’s National Oil Corp. said on Sunday it would resume production temporarily at Zueitina. Not only in China, this oil price movement is also caused by the ban on Russian oil imports
Whereas Russia exports as much as 4.7 million barrels per day to the European Union. However, Western countries have restricted the purchase of oil from the country led by President Vladimir Putin.
Royal Bank of Canada analysts revealed that India’s crude oil imports from Russia recorded a significant increase. From the previous 100 thousand barrels per day in 2021, now it is 800 thousand barrels per day.
India and Russia are indeed negotiating to reach an agreement on shipping millions of barrels of oil per month.
(hns / hns)
–
