WTI Crude Oil Turns Bearish After the Release of China’s Q3 GDP Figures - Forex News by FX Leaders
WTI crude oil

WTI Crude Oil Turns Bearish After the Release of China’s Q3 GDP Figures

Posted Friday, October 18, 2019 by
Arslan Butt • 1 min read

WTI crude oil is trading bearish early on Friday after the release of China’s Q3 GDP, which has slowed to a weaker than expected rate of 6.0% YoY. At the time of writing, WTI crude oil is trading around $53.79 per barrel.

The trade war has weighed heavily on China’s economy for more than a year, and it has started taking a toll on its economic growth. Economists were expecting Q3’s GDP to slide to 6.1%, which would still have been the slowest pace of growth since Q1 1992. Crude oil prices could weaken as China is the world’s biggest oil consumer, and any weakness in its economic growth could impact the demand for oil significantly.

WTI crude oil prices are also trading under pressure following the release of the EIA report on Thursday. The EIA report revealed a surge in US crude inventories by 9.3 million barrels during the previous week, far higher than the 2.8 million barrel build-up forecast. This data, coupled with recent economic data releases including US retail sales and now Chinese GDP figures, continue to focus on weakening oil demand globally.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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