Fears for global economy send oil price sliding

Sarah Arnott
Tuesday 12 July 2011 10:00 BST
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Oil prices fell by as much as $3 yesterday after cautious economic data from China added to concerns at a stalling of the global recovery. In London, Brent crude for August delivery hit a low of $115.22 a barrel, down $3.12, while oil in New York fell $2.13 to a low of $94.10.

The market nervousness came in response to news that China's oil imports fell to an eight-month low in June – 5.7 per cent lower than the month before and down by 11.5 per cent year on year.

The figures add to concerns that the Chinese government will slow growth with a sharp tightening of monetary policy, in response to consumer price inflation running at 6.4 per cent last month despite five interest rate rises since October.

Oil was already on the slide after lacklustre US jobless statistics at the end of last week.

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