What Drives Oil Prices to Crash Like This Once?

thecekodok

 Crude oil traded lower on Wednesday after the latest data from China added pressure on the black commodity.


The Asian session saw Brent crude oil futures trading lower at around $73 a barrel while US WTI fell at $69 a barrel.


Earlier on Tuesday, oil prices had experienced a significant drop with a loss of over 4%.


Uncertainty hovering in the market caused the trading of the black commodity to be uncertain.


Among the factors driving the uncertainty are rising expectations that the Federal Reserve (Fed) will raise interest rates and the market is divided about OPEC's decision at the next meeting.



Adding pressure to the black gold trade is economic data that shows continued weakness in China's recovery.


The latest data from the National Bureau of Statistics (NBS) revealed that the manufacturing PMI index fell deeper to 48.8 this month, from 49.2 recorded the previous month.


While the non-manufacturing PMI index showed an expansion of 54.5 but decreased from the previous month's 56.4.


As one of the world's largest oil consumers, the weakness in China's growth has led to a bleak outlook for oil demand.