The drop in oil due to weak growth in China and fears of raising US interest rates

Oil prices fell in early trading on Thursday, continuing to decline for the fourth consecutive session, amid fears that slowing growth in China and a possible hike in interest rates in the United States will lead to a decline in fuel demand in the two largest economies in the world.

Brent crude futures fell 37 cents, or 0.44 percent, to $83.08 a barrel, while US West Texas Intermediate crude fell 39 cents, or 0.49 percent, to $78.99 a barrel by 0038 GMT.

The failure of a major Chinese credit company to pay dues on investment products and a decline in house prices increased fears that the worsening real estate sector crisis in China will destroy what is left of the economic momentum.

China’s central bank abruptly cut key interest rates this week for the second time in three months, but analysts fear that will not be enough to stop the economic downturn.

“Risk aversion in various markets affected sentiment in all commodities, and economic weakness in China exacerbated this,” ANZ Research said in a note.

Oil prices were also affected by the minutes of the Federal Reserve’s July meeting, published on Wednesday, which showed central bank officials continued to prioritize the battle of inflation.