This past month, the end level for crude oil prices was lower that what was expected from it. This is after the negative economic growth data from China disappointed the investors as well as the traders. However, this was only a part of the bigger picture in the global economic outlook as the worries in the debt woes enter the trading arena together with the comments coming from the oil minister of Saudi Arabia.
Alternatively, futures for light sweet crude in the New York Mercantile Exchange that are for delivery next month closed at the level of US$102.83 for every barrel, which is lower by 0.4% in the past week. Aside from that, it is also very evident that the oil prices significantly fell to US$100.67 for every barrel last April 10, which is the lowest level ever for the past two months already.
This trend is just a result of the negative data coming from the official economic authority of China regarding the country’s economic growth. It has been noticed that China grew the slowest in around three years already for the most recent quarter that passed. Specifically, the gross domestic products or GDP of China grew by only 8.1% in the first quarter of this year, which is behind the level that is expected or projects by the officials. The expected level is 8.3% since the growth in the final quarter that concluded the previous year was 8.9%.
Aside from that, it has also been reported early this week that China has posted an unexpected level of trade surplus in the final month of the first quarter. This was after the imports level of the country dropped significantly as the consumer price inflation skyrockets way higher than what is expected, which is 3.6% for the month of March. Of course, the economy of China has a big impact to the overall oil futures market since the country is the second biggest consumer of oil following the United States in the first place.
Further, whatever is happening in China being the second largest economy, not only in the oil markets, is impairing the global economic growth aside from the impacts from the debt crisis in the Euro Zone.