Oil prices slump on economic worries
On Tuesday, oil prices dipped with Brent rebounding to below $50 a barrel. It’s because economic worries took center stage with many financial experts telling oil demand is going to stall later this year.
Brent crude oil futures were worth $49.60 a barrel, down 1% from their last settlement. As for US West Texas Intermediate oil futures, they dipped 1.57%, reaching $48.22 per barrel.
Financial experts told that worries regarding the global economy were definitely weighing on the outlook for crude demand.
The evident deterioration in the global economic outlook, financial market uncertainty as well as ripple effects on crucial areas of crude demand growth will most probably enhance already-lackluster industrial demand growth trends.
A bunch of long-awaited reports from China in coming weeks is supposed to display ongoing weakness in trade as well as investment, slumping industrial output, not to mention another drop in foreign reserves. It definitely raises the probability that Beijing will have to rely on more radical economic support measures soon.