Oil market settled lower on disappointing Chinese economic data

Global oil prices fell on December 16, weighed down by disappointing economic data from China, the world's largest oil importer, despite the Chinese government's recent commitments to implement stronger stimulus measures.

Brent crude dropped by 58 cents, closing at $73.91/barrel.

WTI also fell by 58 cents to settle at $70.71/barrel.

Market sentiment was dampened by reports of declining refining activity and weak retail sales in China, raising concerns over the nation's sluggish recovery and its implications for global oil demand. This marks a continuation of economic uncertainty in China, which has faced challenges in sustaining growth momentum despite fiscal and monetary policy support.

Additionally, traders opted to take profits ahead of the US Federal Reserve's upcoming monetary policy meeting, which is widely anticipated to result in a 0.25% interest rate cut. Scheduled for December 17–18, the meeting will provide fresh projections for interest rate trends in 2025.

Written by: Muhammad Hafiz