Oil prices decreased after China failed to set an economic growth target for this year. Credit: Schmucki from Pixabay.

Oil prices have decreased after China could not set an economic growth target for this year, which sparked concerns that the fallout from the coronavirus pandemic continues to depress fuel demand in the country.

Brent crude was down $1.38 at $34.68 a barrel, while US West Texas Intermediate (WTI) crude dropped by $1.79 to $32.13 a barrel, Reuters reported.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Oil prices have witnessed gains for the past four weeks after the historic crash of US crude to below zero seen last month.

China’s National People’s Congress (NPC) launched a week-long meeting with the government saying it omitted this year’s growth target, while pledging to issue CNY1tn ($140bn) of special treasury bonds to support companies and regions hit by the outbreak.

AxiCorp chief global market strategist Stephen Innes was quoted by the news agency as saying: “Abandoning the growth target could be interpreted as putting less focus on infrastructure investment and could be viewed as negative for oil.

“The commodity market, in general, was looking for a bigger infrastructure pump from the NPC so there is bound to be an element of disappointment.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Meanwhile, growing tensions between the US and China over Beijing’s plan to implement national security law in Hong Kong also hit commodities as well as other markets.

Phillip Futures commodities senior manager Avtar Sandu said: “Concerns over geopolitical and trade issues … remain amid signs of improving demand and production cuts by major oil producers.”

According to data from Reuters, easing coronavirus-related restrictions is driving a recovery in gasoline demand with traffic congestion in some of the world’s capitals returning to last year levels.