2019.03.0505:45:00UTC+00Oil Prices Dip As China Cuts Growth Target

Oil prices drifted lower on Tuesday as China cut its target for economic growth this year, denting prospects for fuel demand growth.

Global benchmark Brent crude fell 46 cents or 0.7 percent to $65.21 per barrel, while U.S. West Texas Intermediate (WTI) crude oil futures were down 0.65 percent at $56.22 per barrel.

China lowered its economic growth target for 2019 to a range of 6.0 percent to 6.5 percent from the 2018 target of around 6.5 percent, citing challenges from rising debt and a trade dispute with the U.S.

To help spur growth, the Chinese government has unveiled plans to boost spending, increase foreign firms' access to its markets, and cut billions of dollars in taxes.

Beijing also said it would continue to carry out a prudent monetary policy and use reserve requirements as policy tools.

On the trade front, Chinese Commerce Minister Zhong Shan has stated that trade talks with the United States have been "extremely difficult and time-consuming" due to the large differences between the two countries.

Crude oil prices have moved up significantly since the beginning of this year, riding on supply cuts by OPEC and some non-OPEC members.

According to a survey from Reuters, supply from OPEC dropped to a four-year low last month, thanks largely to a larger than originally agreed output reduction by Saudi Arabia.