Oil prices fell on Monday, investors not seeing the economic measures announced on Saturday by Beijing having a real influence on demand for Chinese crude.
The price of a barrel of Brent from the North Sea, for delivery in December, lost 2.02% to $77.44 around 10:30 a.m. Its American equivalent, a barrel of West Texas Intermediate (WTI), for delivery in November, fell 2.14% to $73.94.
According to analysts, the “cautious” measures taken by the Chinese government to revive the economy have not convinced the markets of an increase in Chinese oil demand in the medium and long term.
China, the leading importer of black gold, announced last Saturday a massive recourse to public debt, with special bonds, to support its economy, targeting the market and the banks.
Over the next three months, a total of 2.3 trillion yuan (296.84 billion euros) of special bonds can be used, said Chinese Finance Minister Lan Fo’an.
However, “the absence of a clear timetable and measures to address weak consumption and reliance on infrastructure investment have only increased market skepticism,” analysts say.
The price of oil is also structurally contained by forecasts of abundant production in 2025. Investors still remain “very attentive” to the situation in the Middle East, it is emphasized.
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