[Asia Economy New York=Special Correspondent Joselgina] International oil prices fell amid growing concerns over the Chinese economy. During the session, prices slipped to their lowest level in six months.
On the 15th (local time) at the New York Mercantile Exchange (NYMEX), September delivery West Texas Intermediate (WTI) crude oil closed at $89.41 per barrel, down 2.9% ($2.68) from the previous trading day. This is the lowest closing price since $89.01 on the 5th.
WTI briefly fell below the $87 per barrel mark during the session, marking its lowest level in six months since early February.
At the London ICE Futures Exchange, October Brent crude is also trading around $95 per barrel, down about 3%.
This decline reflects growing concerns over economic growth due to weak economic indicators from China, the world's largest crude oil importer. China's industrial production in July increased by 3.8% year-on-year, falling short of market expectations of 4.3%. July retail sales also rose by only 2.7% year-on-year.
Additionally, concerns about the Chinese economy intensified as the People's Bank of China cut rates on the Medium-term Lending Facility (MLF) and reverse repurchase agreements (reverse repos).
Moreover, expectations rose in the renegotiations to restore the Iran nuclear deal (JCPOA - Joint Comprehensive Plan of Action), putting downward pressure on oil prices. The restoration of the nuclear deal raises the possibility of Iranian crude oil supply.
International gold prices also fell below the $1,800 per ounce level amid China's economic slowdown and a stronger US dollar. On the same day at the New York Commodity Exchange, December delivery gold closed down 1% ($17.40) at $1,798.10 per ounce.
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