Fxpips.com – Prices of oil were down on Monday on worries regarding the status of economic growth in China, the biggest consumer of energy in the planet, and indications that world oversupply is hampering exports of Saudi crude. The Chinese economy rose at its slowest level in 6 years for Q3, based on official figures posted Monday, making it more possible for Beijing to reduce its interest rates to cushion activity. December Brent delivery declined 38 cents at $50.08 per barrel as of 0808 GMT as U.S. November crude delivery was trading down 35 cents at $46.91 per barrel, stretching last week’s biggest fall in 8 weeks. According to London broker company PVM Oil Associates oil expert Tarmas Verga, “China’s gross domestic product data and the surge in Saudi stockpile as a result of dipping crude oil exports are weighing on prices.� Saudi Arabia, the largest crude exporter in the globe, shipped 278,000 barrels per day less crude oil for the month of August, based on trade information, indicating demand for the country’s oil is falling as world supply glut continues. In Austria, oil producer OMV cut its oil price outlook on Monday, witnessing 2016 prices at $55 per barrel and soaring to $70 per barrel last year, $80 per barrel in 2018 and $85 per barrel from 2019 onwards. As a result OMV also disclosed it would take in a 1 billion-euro impairment charge on asset values for its upstream projects. Investors are now looking into progress in the scrapping of western fines on Iran that will let the oil-rich country to restructure its oil output and continue exports to western consumers. On Sunday, Europe Union and the United States took formal legal moves to lift sanctions on Iran once it meets the requirements connected to a landmark nuclear deal with major world powers.

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