Oil prices dip on China growth slowdown, Libya production resumption

July 17, 2023 (MLN): Oil prices dipped on Monday after China's economic data showed growth slowed in the second quarter, raising demand concerns alongside Libya's production resumption over the weekend.

Brent crude is currently trading at $78.66 per barrel, down by 1% on the day.

While West Texas Intermediate crude (WTI) is trading at $74.30 per barrel, down by 1.05% on the day.

Oil prices increased over 1.5% in the last week and touched their highest since April after output was shut at oilfields in Libya and Shell halted exports of Nigerian crude.

China's Gross Domestic Product (GDP) grew just 0.8% over April-June from the previous quarter, data released by the National Bureau of Statistics showed, with its post-pandemic recovery faltering rapidly due to weakening demand at home and abroad, as Reuters reported.

"The GDP came in below expectations, so will do little to ease concerns over the Chinese economy," said Warren Patterson, ING's head of commodities research.

Chinese refineries processed 1.6% more crude daily in June than in May as they ramped up operations after spring maintenance, NBS data also showed, in line with strong imports by the world's top crude importer last month.

In Russia, oil exports from western ports are set to fall by some 100,000-200,000 bpd next month from July, a sign Moscow is making good on a pledge for fresh supply cuts in tandem with OPEC leader Saudi Arabia.

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