Crude Prices Drop Further with Slowing Asian Economies and Worries of Supply Glut
On Thursday, the price of crude oil dropped further pushed by the weak economic data from China and Japan. The growth in Asian markets has been slow this year and further low investment levels signal at further grind down.
Official data revealed that the core machinery orders in Japan which is regarded as an indicator of capital spending expected in the six to nine months ahead was quite volatile dropping to 3.6 percent in the month July which could not keep pace with the economists expectation of 3.7 percent increase. Not only that in June it further faced a month on month decline of 7.9 percent.
As for China, which is the biggest economy of Asia and second largest in the world, analysts are forecasting a further hold back in growth with economic activities not moving fast enough to raise the indicators for a brighter outlook.
In August the producer price index of China dropped 5.9 percent as compared to the same time the previous year. This is the 42nd month of continuous drop and the biggest since the country saw during 2009 when the global financial crisis hit.
Even in the US, the oil prices dropped as supply glut worries the market. U.S. crude stockpiles grew and there is still no sign of the oversupply ending anytime soon.
United Kingdom News
- Estimated delivery dates for both Tesla Model S trims pushed back by several months
- AC Cars to deliver Series 1 Cobra Roadster with new electric powertrain
- Bigger battery-equipped MG5 EV delivers longer 250-mile range
- XPeng shares aggressive pricing for new P5 sedan, undercutting Tesla Model 3 by $14k
- Association of British Insurers wants electric vehicles to replace written-off gas-powered cars