Oil Tumbles as China Lowers Growth Target

Oil prices fell in Asian trade on Monday, wiping out some of the gains of the previous session amid worries lower growth targets in China could cut oil demand and ongoing concern over Russia’s compliance with a global deal to cut oil output.

But worries over escalating violence in the Middle East put a floor under prices.

Brent crude futures dropped 29 cents, or 0.5 percent, to $55.61 a barrel as of 0638 GMT after settling 1.5 percent higher in the previous session.

U.S. West Texas Intermediate (WTI) crude futures fell 30 cents, or 0.6 percent, to $53.03 a barrel after closing the previous session up 1.4 percent.

“The main drag affecting markets today is the lowering of growth targets by China and tighter regulatory controls which implies less demand for oil and commodities in general,” said Jeffrey Halley, senior market strategist at Oanda brokerage in Singapore.

Reuters

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