Oil prices fell on Tuesday in international markets, pressured by concerns over the pace of Chinese economic growth and a stronger dollar, which overshadowed the escalation of tensions in the Middle East.
In London, a barrel traded at $37, meaning its price remained almost unchanged compared to the end of the previous trading day. There were no significant changes in the American market either, where a barrel traded at $36.72.
“Oil prices are being pressured by sell-offs in the Chinese stock market and a strong dollar,” said Tamas Varga from London’s PVM Oil Associates.
Chinese stock market indices fell again on Tuesday, after plunging as much as seven percent the previous day, shaking markets worldwide and forcing intervention from the central bank and stock market regulators. Additional concern for the Chinese economy, the second-largest oil consumer in the world, was heightened by news that freight rail transport in 2015 recorded a record decline.
“Last year we talked about supply, and demand pleasantly surprised us. However, new news from China is rekindling concerns about demand,” explains Frank Klumpp from the Stuttgart branch of the regional bank Baden-Wuerttemberg.
