IHS report says a Chinese economic slump could drop oil price to $50 | The National

IHS report says a Chinese economic slump could drop oil price to $50 | The National:



"A hard landing for the Chinese economy would crimp growth in the Middle East through a fall in oil prices, new research has found.



IHS, a US-based information and analytics provider, said there was a one in four chance that Chinese growth would fall as low as 3 or 4 per cent a year in the coming three to five years, dragging oil prices down to as low as US$50 per barrel.



“A hard landing in China would mean the Middle East would experience weaker exports, lower tourism and business activity and probably a resurgence of risk aversion by global companies due to this new deterioration of the global economic situation, just at the moment when they thought the situation was finally improving,” said the IHS chief economist, Nariman Behravesh."



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