Oil Slides on IMF Forecast

Oil Slides on IMF Forecast
Oil Slides on IMF Forecast

Oil prices slid on Tuesday from their highest levels in a month after Chinese economic data dampened market sentiment and the head of the International Monetary Fund forecast a tougher 2023.
Brent crude futures had fallen by 25 cents, or 0.29%, to $85.66 a barrel, while US West Texas Intermediate crude was at $80.06 a barrel, down 20 cents, or 0.25%, Reuters reported.
Weaker factory data from China, the world's largest crude importer and second-largest oil consumer, weighed on prices. 
The Caixin/Markit manufacturing purchasing managers' index fell to 49 in December from 49.4 in November. 
The index has stayed below the 50-point mark that separates growth from contraction for five straight months.
Yet there was a return to regular activity in China on Monday, as some people in key cities braved the cold and a rise in Covid-19 infections, raising the prospect of a boost to the economy and oil demand as more recover from infection.
"The market cannot expect a rapid recovery of the Chinese economy after three years of [pandemic controls], the mass bankruptcy of small- and medium-sized enterprises, the soaring unemployment rate, the rapid increase in the social savings rate, and the rapid growth in the number of infections and deaths in recent months," said analyst Leon Li from CMC Markets.

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