China economy " bleak" for 2024 and 2025 LONDON (Reuters) - Oil fell more than $1 on Wednesday as economic growth in China, the world's second-largest crude user, slightly missed expectations, raising concerns about future demand, while U.S. strength dented investor's risk appetite.
futures fell $1.26, or 1.6%, to $77.03 per barrel by 1158 GMT. U.S. West Texas Intermediate crude futures (WTI) were down $1.35, or 1.9%, at $71.05.
Even the ongoing naval and air conflicts in the Red Sea (NYSE:) have not been enough to support oil, despite increased concerns about tankers having to pause or reroute, increasing shipping costs and slowing deliveries.
China's economy in the fourth quarter expanded by 5.2% year-on-year, missing analysts expectations and calling into question forecasts that see Chinese demand fuelling 2024 global oil growth.
The economic data "doesn't end the headwinds over demand, the Chinese outlook for 2024 and 2025 is still bleak," said Priyanka Sachdeva, senior market analyst at Phillip Nova.