Oil prices fall as Chinese economic data fuel demand concerns

Global oil prices are falling today. The latest data on the Chinese economy fell short of expectations, fuelling concerns about demand for fuels. North Sea Brent crude was down around 1.4 percent at $78.7 a barrel shortly after 18:00 CEST. US light crude West Texas Intermediate (WTI) was down around 1.3 percent at $74.4 a barrel.

China’s National Bureau of Statistics announced today that the Chinese economy grew by 6.3 percent in the second quarter, up from 4.5 percent in the first quarter. However, this was significantly below analysts’ expectations of an average 7.3 percent. China is the world’s largest oil importer.

China’s gross domestic product (GDP) growth is accelerating this year after last year’s slowdown, which was caused by strict measures to contain the spread of coronavirus. However, China’s economic recovery has recently been held back by weaker domestic and foreign demand. “GDP fell short of expectations, doing little to ease concerns about the Chinese economy,” said Warren Patterson, an analyst at ING.