TOKYO: Oil prices fell on Wednesday as weak Chinese and Japanese industrial data triggered concerns of an economic slowdown that could lower oil demand, and as an industry data report showed an increase in US crude stockpiles amid soaring output.
US West Texas Intermediate crude was down 32 cents, or 0.5 per cent, at $62.69 a barrel by 0755 GMT, after falling 90 cents in the previous session.
Brent crude was down 25 cents, or 0.4 per cent, at $66.38 a barrel.
On Tuesday, Brent fell 87 cents to $66.63.
Traders said oil prices declined on concerns of a slowdown in the global economy after China reported on Wednesday that factory growth in February was at its lowest since July 2016.
China is the world’s second-biggest economy and the biggest importer of oil after overtaking the Unites States last year.
Crude oil demand is highly correlated to economic growth.
While China’s week-long Lunar New Year holiday this month disrupted business activity, traders also pointed to tougher pollution rules that curtailed factory output.
In Japan, the world’s third-largest economy, industrial output in January took its biggest tumble since a devastating earthquake in March 2011, highlighting a weakening in demand and a build up of inventory. In the United States, the world’s biggest oil consumer, rising crude stockpiles weighed on prices. — Reuters
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