Oil prices slide by more than a US dollar on per barrel on Monday. 

This is reportedly due to uncertainties about China’s economic growth overshadowing an announcement from Organization of the Petroleum Exporting Countries, OPEC, about production cuts and the seventh consecutive drop in the number of oil and gas extraction facilities operating in the US. 

A barrel of European reference crude, Brent, costs USD 75.48 on Monday, compared to USD 76.13 on Friday. Meanwhile, US benchmark West Texas Intermediate (WTI) crude trades at USD 70.75 versus USD 71.19.

A number of big banks have downgraded their expectations for China’s GDP in 2023, Reuters reports. This comes in the aftermath of May data showing that the recovery of the world’s second-largest economy was reeling.

Oil prices also slide as a result of the expectation that OPEC will find it difficult to meet its production quotas, says Edward Moya, analyst at Oanda, to Reuters.

US energy companies reduced the number of oil and gas extraction facilities for the sevenths week in a row – the group hasn’t cut the number so severely since July 2020.

These factors combined have contributed to reducing oil demand.

English edit: Daniel Pedersen