Crude fell for the first time in three days as China’s economic growth slowed to the least in almost three years and Saudi Arabia’s oil minister said the kingdom is determined to see lower prices.
Futures dropped as much as 1 percent after the National Bureau of Statistics said gross domestic product in the world’s second-biggest oil-consuming country expanded 8.1 percent in the first quarter from a year earlier. There’s no shortage of oil supply, and Saudi Arabia is working toward damping prices, Oil Minister Ali al-Naimi said today.
“The China GDP number had a thawing effect in the market,” said Kyle Cooper, director of IAF Advisors, a Houston- based consulting firm. “The Saudis want to see overall economic growth, and $100 oil has a lot of incentives for alternative energy. The Saudis don’t want to see alternatives.”
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