Oil down on China worries

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SINGAPORE: Oil prices were lower in Asian trade Monday, dragged down by prospects of weaker crude demand from China and a buildup in US stockpiles, analysts said.

New York's main contract, West Texas Intermediate light sweet crude for delivery in July, dropped 64 cents to $93.51 a barrel in the morning and Brent North Sea crude for July delivery shed 41 cents to $102.23.

"The crude market has reacted negatively to comments from the Chinese government that it will tolerate a slower rate of economic growth," Victor Shum, managing director at IHS Purvin and Gertz in Singapore, told.

President Xi Jinping on Friday said China, the world's second largest economy and top energy consumer, will not sacrifice the environment for temporary economic growth.

"The comments by Xi further deepened concerns about the Chinese economy after the poor manufacturing data last week," Shum added.

Meanwhile, a less-than-expected drop in US crude stockpiles was also weighing on prices.

Courtesy: The News

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