Oil is getting cheaper. Oil quotes are falling Tuesday night due to concerns about slowing global economic growth and weakening demand for fuel.

It became known the day before that growth in retail sales and industrial production in China in July was weaker than analysts’ forecasts.

Retail sales rose by 2.7% year-on-year instead of the expected 5% growth. China’s industrial production growth slowed to 3.8% last month from 3.9% in June, while analysts’ consensus forecast was 4.6%.

Is oil getting cheaper? Why It’s Getting Cheaper

To support China’s economy, the People’s Bank of China injected 400 billion yuan (nearly $60 billion) into the financial system as part of its medium-term lending (MLF) program and also cut the rate on one-year MLF loans by 10 basis points, to 2.75% per year.

“This unexpected decision gave the impression that the central bank was concerned about the scale of the weakening economy,” wrote Commerzbank (ETR:CBKG) analyst Carsten Fritsch. — In our view, problems in the real estate sector, combined with a zero-tolerance coronavirus strategy, are likely to continue to weigh on the economy in the short to medium term, meaning it will be a persistent negative factor for oil prices.”

October Brent futures on the ICE Futures Exchange in London had fallen $1.10 (1.16%) to $94.00 per barrel by 5:56pm Moscow time.

At the same time, quotations for WTI futures for September at NYMEX decreased by $0.98 (1.10%) — to $88.43 per barrel.

We previously reported that oil prices have stepped up their fall.