ALBAWABA – Global oil prices slid more than 1 percent Monday, after significant gains last week, over economic uncertainties in China outweighing oil production cuts.
Brent crude was down $0.78 to $75.83 a barrel, Reuters reported.
Meanwhile, United States (US) West Texas Intermediate (WTI) crude was down $0.76 to $71.02.
Concerns over China’s economic growth surpass the impact of output cuts by members of the Organization of Petroleum Exporting Countries and their allies (OPEC+).
It even outweighed production cuts in Canada and the US, with the seventh straight drop in oil and gas rigs operating in the United States.
"China's economic uncertainties may have caused the selloff after a two-day rebound in oil markets ahead of The People's Bank of China's (PBOC) decision on its loan prime rates (LPR) this week," Tina Teng, an analyst at CMC Markets, told Reuters.
A number of major banks have cut their 2023 gross domestic product growth forecasts for China after May data last week showed China’s post-COVID recovery was faltering.
