Experts state that production in China will not reach high rates in the near future.
According to experts, the sharp decline in oil prices is a reaction to negative news from China, as the economy of this country showed very modest results last month.
The Haqqin publication states that in the near future it is not worth waiting for China’s global production to reach high recovery rates.
At the same time, much of the world depends on Beijing.
At the beginning of the week, there was a sharp drop in the price of oil – at the lowest point, one measuring barrel cost five dollars cheaper than the day before.
Now experts are watching for signs of an imminent recession.
The price of oil below $93 per barrel corresponds to the indicators before its in Ukraine. At the same time, against the background of the special operation itself, prices rose to $139 at the peak on March 7. Then the indicators stayed above $100 for a long time.
The current sharp decline is a reaction to bad economic news from China.
For example, investments in the real estate market of China collapsed in July by 12.3%, and sales fell by 28.9%.
Housing prices have been trending down for the 11th month in a row, which indicates a lack of demand.
Production fell by 6.4%. Experts also talk about a drop in freight traffic, which actively signals a decrease in activity in the economy, InoSMI writes.
Unemployment in the country is 5.4%, but among young people this figure is about 20%.
Earlier, topNews wrote that China suspended cooperation with the United States in several areas.
This happened after the scandal with Pelosi’s visit to Taiwan.