Oil falls as weak Chinese data sparkes slowdown concerns

Oil prices fell during the European session today, to hit a pause for the first day in 3, as Chinese growth data showed the slowest pace in more than 3 decades during the third quarter, which stoked global slowdown concerns and slammed demand, in addition to a sharp surge in the US commercial crude inventories.

WTI fell to $53.75, from the opening of $54.06, with an intraday high of $54.09.

Brent fell to $59.54 a barrel, from the opening of $59.80, with a high of $59.85.

WTI closed higher by 2.1% yesterday, and Brent futures gained 1.4%, in their second straight daily, after the announcement of the Brexit deal between the UK and the EU.

Chinese data showed today that the GDP growth during the third quarter slowed to 6.0% from a year earlier lower than forecasts of 6.1% and also lower the previous annual reading of 6.2%.

The reading showed the Chinese economy grew by the slowest pace in nearly three decades, which is due to the one year old raging trade war between the US and China, as it has sharply impacted the factories production and decreased demand levels.

The US Energy Information Administration (EIA) revealed yesterday that oil inventories rose by about 9.3 million barrels during the week ending October 11, the fifth weekly increase, beating forecasts of a 2.7 million barrels.

The total US commercial inventories rose to 435.3 million barrels, the highest level since the week ending in August 16, which indicates that domestic demand has weakened in the US, while the production levels were unchanged from last at its all-time record high of 12.6 million barrels per day.