And the main reason hides in the Chinese new lower targets of growth, and doubtful Russian output cuts.
During this Monday morning trades, Asian market was shaken by the new fell of oil prices. The gains from the last session went down and have been forgotten today. The worries about new low Chinese target of the economic growth for this year cut the demand for oil.
Another potential threat to the oil sellers right now is Russia, which stands agreement in OPEC under the question. Its devotion to the new policy of decreased output is doubtful.
However, the new worries about Middle East dangerous situation gave the oil chance to save its income.
Brent oil futures lost 47 cents, which is only 0.8 percent. Today it was sold by 55.43 dollar per one barrel. Last session showed a new income in 1.5 percent.
As for the WTI American futures, oil lost 47 cents, which is 0.9 percent. It stood onto 52.86 dollars per barrel in the morning trades. During the previous session it gained 1.4 percent.
According to the senior strategist from the market, Jeffrey Halley, the main problem that can crush all the traders’ hopes to see high prices for oil is in the Chinese decision to lower down its annual growth target. It can lead to the cut of the demand for oil and all the other commodities.
While this year Chinese plan to raise the economy 6.5 percent high, last year the annual growth was 6.7 percent.