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Project Insights

China's economic downturn could severely dent energy players

Oil and gas is one of the economic sectors in China most vulnerable to a severe deceleration in growth, as reduced demand for commodities could take place in tandem with a fall in energy prices Oil and gas is one of the economic sectors in China most vulnerable to a severe deceleration in growth, as reduced demand for commodities could take place in tandem with a fall in energy prices.
By Colin Shek 17 June 2019 Asia Pacific / Companies & Finance 0 34312
Semi-submersible drilling platforms in Yantai, Shandong province. (PA)

China’s economy is showing fresh signs of weakness, according to data on industrial output and investment for last month published on Friday. The soft indicators have added to evidence of a slowdown that could have a severe impact on the country’s energy sector if it were to worsen.

The weak economic data, coupled with gloomier forecasts and the escalation in trade tensions between China and the United States, raises the spectre of a sharper-than-expected slowdown in the Chinese economy. Beijing has targeted GDP growth this year...