Oil prices are falling due to concerns over a potential downturn in China’s economy, – Reuters

Oil prices dropped after inflation in China decreased, and uncertainty about the country’s economic stimulus plans raised concerns about fuel demand in the world’s largest oil importer.

According to Reuters, Brent crude futures fell by 86 cents, or 1.1%, to $78.18 per barrel, while West Texas Intermediate (WTI) futures in the U.S. dropped by 83 cents, or 1.2%, to $74.73 per barrel.

Both benchmarks reversed last week’s gains, with prices dropping by over $1 per barrel on Monday before slightly recovering. Last week, Brent rose by 99 cents, and WTI increased by $1.18.

Negative news from China outweighed market concerns about the potential disruption of oil production following Israel’s response to Iran’s missile attack on October 1. Although the U.S. warned Israel against targeting Iran’s energy infrastructure, market worries remain.

Deflationary pressures in China intensified in September, and a press conference left investors uncertain about the size of the stimulus package aimed at boosting capital in the world’s second-largest economy.

China’s Consumer Price Index fell short of expectations, and the Producer Price Index dropped by 2.8% year-on-year, marking the fastest decline in six months.

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