Oil Prices Fall 2% Impacted by China’s Economic Measures
Brent crude futures for December delivery declined 2% to $77.46 per barrel.
Oil prices fell on Monday, driven by concerns over China’s recent economic measures and heightened geopolitical tensions due to military exercises near Taiwan.
China, the world’s largest crude importer, announced on Saturday a plan to issue special bonds to stimulate its slowing economy and boost the real estate and banking sectors. Over the next three months, 2.3 trillion yuan (about $325 billion) in special bond funds will be made available for various projects.
However, the absence of clear policies to stimulate domestic consumption disappointed investors, as did weak import data, raising doubts about China’s demand outlook.
Brent crude futures for December delivery declined 2% to $77.46 per barrel, while West Texas Intermediate (WTI) for November delivery dropped 2.29% to $73.83 per barrel.
Geopolitical tensions also weighed on the market. On Monday, China launched military drills near Taiwan, describing them as a “warning” to separatist movements on the self-governed island. Investors fear that any escalation in the Taiwan Strait could disrupt the global economy and further reduce oil demand.
In addition, analysts noted that concerns over possible Israeli retaliation against Iranian oil infrastructure have eased, removing another factor that previously supported oil prices.
In Mexico, three workers have filed a lawsuit against Pemex, alleging injuries sustained due to a leak at the Deer Park refinery. In their complaint, the workers claim that Petróleos Mexicanos failed to maintain, control, and supervise the refinery adequately, and did not provide safe working conditions within the plant.
The lawsuit highlights concerns over safety protocols and operational management at one of Pemex’s key facilities, raising questions about the company’s commitment to employee welfare and regulatory compliance. Further details regarding the incident and the legal proceedings are expected to unfold as the case develops.
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