On Monday, crude oil prices dipped as fears about China’s slowing economic growth, the world’s leading oil consumer, outweighed expectations that supply would be hampered by a prospective European Union ban on Russian petroleum.

At the time of writing, Brent crude prices were down by 2.5% to $104.44 a barrel, dropping by $2.70 in value. Meanwhile, West Texas Intermediate (WTI) oil futures were down 3% and traded at $101.52 a barrel, losing $3.17 in value. Moreover, markets in the United Kingdom, Japan, Southeast Asia, and India remained suspended due to official holidays.

Due to COVID lockdowns, industrial production in China fell for the second consecutive month, reaching its lowest level since February 2020, according to statistics provided on Saturday.

Analyst’s Statement

“A slowing to that extent, when China is already suffering from a property bust and worries about its (until recently) increased regulation, is potentially a major issue for commodity markets and the world economy.”

said Tobin Gorey, a Commonwealth Bank commodities analyst.
Ruble pay

Earlier, on April 27, 2022, four European gas purchasers already had settled for gas supply payments in rubles as Russia wanted, and more cut-offs if any country opposes the Kremlin’s demand are unlikely till the later half of May. The other next transactions are due by then.

However, numerous countries had stated that they will defy Moscow’s requests of paying in rubles for oil and gas supply. Russia and a number of its companies had been sanctioned as a result of the invasion. Western sanctions had harmed Russia’s economy, however the EU had refrained from imposing restrictions on energy imports.

The oil prices dipped then as well. Brent futures were down by 1.19% and were priced at $103.7 today. Moreover, the WTI futures dropped by 1.43% and was a little above the $100 mark. However, today’s figures are still better than these previously reported figures.

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