Amid persistent fears on the stock exchanges on the state of the Chinese economy, oil prices accelerated their decline. The cost of the March futures for Brent crude mixture was reduced to 32,53 USD per barrel, and February gold futures on WTI – up to 31,97 USD per barrel.
MOSCOW, 11 Jan. The world prices for oil on Monday has accelerated the decline; WTI follow Brent depreciates more than 3% amid ongoing worries about the exchanges on the state of the Chinese economy, the weakening of which may increase pressure on prices from the excess supply in global oil markets, according to AFP.
As at 19.01 GMT, the March futures price for North sea petroleum mix of mark Brent fell 4.14% to 32,53 USD per barrel. The price of February futures for oil of mark WTI fell on 3,62%, to 31,97 USD per barrel.
Investor concerns regarding China’s economy intensified after the people’s Bank of China weakened the yuan to the dollar in the first week of 2016, more than 1.5%. This was the largest change in the rate of the national currency of the PRC from August 2015, when the devaluation of the yuan the strongest effect on global stock markets.
On Friday, January 8, Chinese Central Bank raised the yuan exchange rate against the dollar to 6,5636 with 6,5646 yuan the previous day, and on Monday — to 6,5626 yuan per dollar. However, market participants fear that China would continue the devaluation of the national currency, trying to support exporters and to remain competitive in the regional market.
“Oil prices fell again after the fall in Chinese equities. Oil prices may not recover, even with the lower inventories in the United States and a stable dollar,” commented the Agency MarketWatch analyst at Price Futures Group Phil Flynn (Phil Flynn).