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Crude Drops 2%, Dragged Down by Worsening Market Sentiment

January 23, 2019 at 0:09 by Vladimir Vyun

Futures for crude oil fell about 2% on Tuesday as the market sentiment soured. There was a range of factors that led to worsening of the traders’ mood.

One of them was the Monday’s report that showed slowdown of China’s economic growth to the slowest pace in almost 30 years. The International Monetary Fund revised its global growth forecast for 2019 lower to 3.5% from 3.7% in the October’s forecast. US housing market demonstrated poor performance as existing home sales dropped 6.4% to the seasonally adjusted rate of 4.99 million in December, missing the average forecast of 5.27 million. And to top it all off, the United States canceled the trade talks with China scheduled for this week.

Futures for delivery of WTI crude oil in March dropped 2.29% to settle at $52.57 per barrel on NYMEX. Brent crude declined 1.98% to $61.5 per barrel on ICE.

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