Oil falls as China’s downgraded property sector adds fear to demand outlook

2 min read | December 10, 2021 01:01 PM AEDT | By Arpit Verma

Oil falls as China’s downgraded property sector adds fear to demand outlook — Image source: © Kiselaw | Megapixl.com

Downgrade ratings of Chinese property developers

Rating agency Fitch downgraded property developers Kaisa and China Evergrande Group ratings to “restricted default” status on the back of defaults on offshore bonds. The news could intensify China’s GDP growth fears and could impact the nation’s oil purchase.

Oil prices going down

Source: © Yakobchuk | Megapixl.com

On Wednesday, the Prime Minister of Britain also imposed tougher COVID-19 restrictions in England stating that people should work from home wherever possible.

Additionally, South Korea has recorded a huge number of cases while cases remain elevated in Australia and Singapore.

Meanwhile, crude oil inventories were down by 240,000 barrels last week with stocks at Cushing hub rising by 2.4 million barrels, as per the Energy Information Administration data.

Bottom Line

Crude oil prices settled lower on Thursday on economic fears in China after Fitch downgraded ratings of two major property players on defaults on offshore bonds.

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