Oil stares at a bleak future as China's economy sputters. The good news: A market 'bust' is unlikely

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Commodity Markets News

Oil And Gas,Singapore,India

Are oil markets inching towards a bust? That's a key question hanging over industry watchers as they debated the fate of crude at the recent APPEC conference.

China, the main engine driving the world's oil demand, has been sputtering. Tepid Chinese oil demand, coupled alongside a perceivably oversupplied market, has driven U.S. crude prices down to their lowest in over a year.

to hike a planned output increase of 180,000 barrels per day in October, as part of a program to return a broader 2.2 million barrels per day to the market over the following months. Trading Giant Trafigura raised concerns about China's weak demand, and the global oil consumption tied to it. Luckock, however, warned about becoming too bearish. "It's dangerous because there's so many events out there that can ruin your day."China's slowdown has spurred some to scour for alternative oil demand drivers, with a few eyeing India as a potential candidate.

 

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