Crude oil might have seen some support from data out of China, easing concerns that Chinese oil demand was faltering. Reuters reported that China's June refinery output was up 3.2% from a year earlier at 45.08 million tons, or 10.97 million barrels per day (bpd)-- the highest on a daily basis ever, according to data from the National Bureau of Statistics.
The price point at $44 per barrell really has been a historic support for oil in recent years. In fact, in this millennium the only time oil has been below $44 a barrel is when the market is racked with economic doom and gloom. We saw that late last year and early this year as China economic fears sent oil prices crashing, driving global equity markets lower.
There has been a lot of distressing analysis regarding China’s economy and its impact on global growth, but the world’s second largest economy finally could be turning around. There is evidence that a Chinese economic recovery is near. This is in stark contrast to the majority of economists and analysts that say there is more pain in store for China. Many analysts are predicting the slowdown could escalate into a hard landing.
China will further open up sectors such as telecommunications, airports and oil and gas exploration to private firms, China's cabinet said today, in an effort to halt a record slide in private investment growth.
The New Development Bank (NDB), an infrastructure-focused lender established by the BRICS emerging economies, plans to issue debt in the local currencies of its five member countries, the bank's president said.
David Lipton, first deputy managing director of the IMF, warned in a speech to a group of economists in the southern city of Shenzhen that companies' indebtedness is a "key fault line in the Chinese economy".
Growth in China's fixed-asset investment slipped below 10% for the first time since 2000 in January-May as a boost from record credit growth seemed to be quickly fading, putting expectations of further stimulus back on the table.