It seems that when the Chinese economic data disappoints, oil prices fall. As the following report from a Bloomberg article says, “Oil Prices Drop As China Economic Data Gains Momentum.” The decline in oil prices is a surprise to most of the observers especially those who rely on the information coming from China and other countries in Asia.
According to some observers, the decline of the price of crude oil is due to a number of factors including economic data that is not good for the Chinese economy and other economies of the world such as the US. The data was released just before the Asian economic forum, which was hosted by Japan.
The data was released after the China’s National Bureau of Statistics released its official figures for the July through September period of the Chinese economic year. Some analysts said that these figures were not so good and it is because of the weak oil demand that the price of crude oil fell. However, the experts do not believe this, especially because they also said that it will be very difficult for the Chinese economy to increase the production of oil in the current scenario.
According to the analysts, these figures are not necessarily accurate and may not be released to the press as soon as it comes out because the Chinese government does not want to disappoint its own people. Some of the analysts also said that the recent decline of the oil prices in the Asian market can also be attributed to the US Federal Reserve, the Chinese government’s attempts to increase production and also the political instability in the United States.
The analysts say that since there is no positive news on the horizon for the Chinese economy, the only thing that can save the country now is to bring an end to the fiscal policies adopted by the Chinese government. They also said that China cannot help but follow the lead of the US and the Japanese in implementing fiscal policy changes especially if it means that the price of crude oil goes down in the country.
Another reason why oil prices decline in the Chinese economy is because of the weakening of the US dollar is usually associated with oil. There are reports saying that if oil prices in China will fall more, it will cause problems in the country’s trade and economy.