China economic growth worries pushed oil
to drop sharply
August 26 2015
The Crude oil prices
recovered slightly but remains trading below $40 per barrel and near the lowest
level in six and half years. In fact, the decline of oil prices was due increased worries about the weak demand for oil from China. And the recent negative
economic data has pushed the Chinese central bank to move in order to support
the struggling economy. On the other hand,
the continued worries about the slow global economic growth has not only affected the oil
prices , but also the equity markets, like the Asian stocks which opened lower
at the beginning of today trading session. Furthermore,
the US dollar has lost its ground as the investors moved away from riskier
assets, and instead they turned to buy safe-haven currencies like the Euro and
the Japanese Yen.
