Crude oil prices: Brent, WTI decline after subdued GDP growth in China

Global crude benchmark Brent was down 0.24% at 0300 hours GMT. Its futures for September delivery were trading at $84.65 per barrel.

The U.S. West Texas Intermediate (WTI) crude was trading at $81.69 per barrel, lower by 0.27% as against the last closing price.

The concerns over dampening of growth in China, the world's second-largest crude oil consumer, has impacted the prices of Brent and WTI, commodities market analysts pointed out.

Till the past week, crude oil rates were edging higher on the growing prospects of interest rate cuts in the United States, the world's biggest oil consumer.

China GDP misses estimates

The gross domestic product (GDP) of China rose by 4.7% year-on-year in the second quarter (April-June period) of calendar year 2024, as per the data released by the country's National Bureau of Statistics on Monday, July 15.

“We must work harder to invigorate the market and stimulate the internal impetus,” the National Bureau of Statistics said in a media release.

The bureau, in another set of data, showed June retail sales also missing estimates. The sales rose 2% compared with the 3.3% growth forecast. During the month, the country's unemployment rate remained at 5%, the same as the previous month.

The Chinese economy is yet to recover from the COVID-19 jolt, as domestic demand continues to remain muted. The pace of inflation remained low at 0.2% in June.

While exports during the month increased to 8.6%, imports dropped by 2.3%, indicating that demand was yet to pick up in the world's second-largest economy.