Oil fell as much as 4 percent on Monday as weak economic data from China, the world’s largest energy consumer, weighed on prices and an OPEC source played down talk of an emergency meeting to stem the decline.
China’s manufacturing sector contracted at the fastest pace since 2012 in January, adding to worries about demand from the world’s second-biggest economy at a time when the market is already weighed down by a large supply overhang.
“The weak China PMI (purchasing managers index) is driving down prices because China weighs on the entire commodities sector from the demand side of the equation,” said Carsten Fritsch, senior oil analyst at Commerzbank in Frankfurt.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.