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Oil prices drop below $84 on china data

Oil prices tumbled Tuesday on further signs of an economic slowdown in China and after the government of Norway intervened to end a strike that threatened North Sea oil production. Benchmark U.S. crude fell by US$2.08, or 2.4 per cent, to finish at $83.91 per barrel.

NEW YORK — Oil prices tumbled Tuesday on further signs of an economic slowdown in China and after the government of Norway intervened to end a strike that threatened North Sea oil production. Benchmark U.S. crude fell by US$2.08, or 2.4 per cent, to finish at $83.91 per barrel. Brent crude lost $2.35 to close at $97.97 per barrel in London. China’s June imports increased by about 6 per cent. That is down from May’s rate and worse than analysts had expected. Growth in exports slowed as well. China is the world’s second biggest oil consumer behind the U.S. and if its economy slows it won’t need to use as much energy. “Crude imports into the country last month fell 14 per cent from May to a seven-month low,” independent oil analyst Jim Ritterbusch said. Traders will closely watch China’s second quarter GDP and industrial production numbers, due out at the end of the week, he said. The threat of an industry shutdown in Norway ended Monday night.