Oil prices continued their steep slide Monday, with a barrel of U.S.-produced crude hitting a 52-week low of $47.20 a barrel as investors reacted to the biggest one-day stock sell off in China since 2007, and worries about an oil glut gained steam amid fears of an economic slowdown in China.
China, the world’s second-biggest economy, is no longer growing at a double-digit percentage pace as it was a few years back, and investors around the globe are questioning whether the government’s reported 7% growth in the second quarter truly reflects the state of China’s economy.
The world’s oil market is already suffering from a supply gut, with Saudi Arabia and other oil-producing countries in the Middle East still producing oil at a record pace at the same time the U.S. has emerged as a key player in the world’s oil market. Fears of a China slowdown, which could…
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