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Amidst a prevailing backdrop of bearish sentiments for many commodity markets throughout this year, there has been an expectation of a resurgent Chinese economy to kickstart another demand cycle and boost prices. However, China’s latest economic indicators to be published cast doubt upon the realization of this much-anticipated revival. In this week’s article, we will look at this latest round of data, the current implications on commodity prices and how this situation may develop in the near future.

Oil prices fell by around 1% in early Asian trade on Monday after major Libyan oilfields resumed production over the weekend following a brief shutdown and after China reported second-quarter economic growth below expectations.

Oil prices fell on Tuesday morning as uncertainty around Chinese oil demand continues to grow – particularly in the near-term.

China added to crude oil stockpiles at the fastest rate in nearly three years in May, as robust imports outweighed near-record refinery processing.

The vast disparity between China’s oil needs to power its economy and its lack of oil reserves has meant that its economy has been a key driver for oil prices since the mid-1990s.