Crude oil prices fell on Monday following China’s unexpected interest rate cut aimed at boosting the world’s second-largest economy, but it had little effect on sentiment.
By 06:40 Eastern Time, U.S. crude futures had fallen 0.3% to $78.37 a barrel, while Brent futures had dropped 0.3% to $82.39 a barrel.
The People’s Bank of China unexpectedly cut its benchmark lending rates to a new record low on Monday in an effort to support the country’s struggling economy.
The People’s Bank of China cut the one-year loan prime rate to 3.35% from 3.45%, while the five-year loan prime rate, which is used to set mortgage rates, was reduced to 3.85% from 3.95%.
These cuts come just one week after weaker-than-expected GDP data for the second quarter, raising concerns about slowing economic growth and increasing doubts about the central bank’s ability to achieve its full-year GDP growth target.
Chinese officials had pledged to provide more stimulus during the third plenum of the Chinese Communist Party last week, but sentiment surrounding Chinese markets remains weak amid speculation that Donald Trump may win a second term as President of the United States.
