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Oil becomes cheaper after the publication of reports on the decline in economic growth in China. The economy of the largest oil exporter showed the slowest quarterly growth in the last 27 years, which increased fears about the prospects for oil demand. September futures for the supply of Brent crude oil fell by 15 cents, or 0.2%, to 66.57 dollars per barrel, American WTI by 24 cents, or 0.4%, to 59.97 dollars per barrel. Recall, both varieties showed the largest weekly increase in three weeks due to the reduction in oil production in the United States and tensions in the Middle East. In general, on the supply side, prices remain stable, but there is no excitement on the part of buyers.
China's economic growth slowed to 6.2% year-on-year in the second quarter. Nevertheless, industrial production and retail sales surpassed forecasts, giving reason to believe that the economy is healthier than previously thought. In June, the volume of oil production in China rose to a record 13.07 million barrels per day, which is 7.7% more than a year ago. ANZ analysts reported that the volume of oil imports this year still looks impressive, even despite a slight drop in June. "We believe that the additional quota for oil (provided) to private refiners should support imports in the second half of 2019," the bank noted.
Iranian President Hassan Rouhani said that Iran is ready to negotiate with the United States if Washington cancels the sanctions and returns to the agreement on the nuclear program in 2015. Meanwhile, the UK has offered to release the detained Iranian oil tanker Grace 1, if Tehran will guarantee that it will not go to Syria. "The situation in Iran is also in focus. This is not the most serious event yet, but it has the potential to start having a serious impact on the markets," CMC Markets said.
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