Home / Markets / Commodities /  Oil extends fall on weaker-than-expected China economic data, slowdown worries
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New Delhi: Crude oil prices continued to trade lower on Tuesday amid weaker-than-expected economic data from China and concerns of a global slowdown, a day after touching six-month low.

China’s retail sales and factory data witnessed a growth, but were far below market expectations, analysts said. Retail sales grew by 2.7% in July from a year ago and industrial production rose by 3.8% on a year-on-year basis.

The central bank of China has lowered lending rates to revive demand amid concerns of a slowdown.

“Demand concerns amid disappointing US and Chinese economic data, forecast of higher US crude production and progress in Iran’s nuclear talks are weighing on the crude prices. Crude oil witnessed a sharp rebound in last few days but failed to hold on to the gains and set fresh February lows which shows that the bears are still in control," Ravindra Rao, head of commodity research at Kotak Securities said.

Growth worries and shaky risk sentiment amid tightening monetary policies may continue to keep pressure on prices, he added.

Around 11.05 am, the October contract of Brent on the Intercontinental Exchange was at $94.27 a barrel, lower by 0.87% from its previous close. The September contract of the West Texas Intermediate (WTI) on the NYMEX fell 0.65% to $88.83 per barrel.

Investors also anticipate the US-Iran talks on the 2015 nuclear deal to revive, which may lead to removal of sanctions on Iranian oil exports and support global supplies.

The fall in oil prices bodes well for India as it imports around 85% of its energy requirement.

However, despite the decline in the international crude prices, retail prices of petrol and diesel remained unchanged in the country. In the national capital, petrol was priced at 96.72 a litre and diesel was sold for 89.62 a litre.

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