Saudi Arabia’s plans of cutting oil production by 10% could end up affecting the country in starkly negative way, as markets have not accounted in pricing for an oil production that is lowered by nine million barrels per day from next months and onwards. Thus, the Saudi’s message has not pumped up oil prices.

Thursday morning, a barrel of European reference oil, Brent, costs USD 76.79 against 77.06 Wednesday afternoon. A barrel of US West Texas Intermediate is simultaneously traded at USD 72.38 against 72.55.

It is the third trading day in a row where prices fall, following the weekend’s statement. This is partially due to China’s would-be financial recovery remains lackluster, after the most recent pandemic-related shutdowns in many parts of Chinese society.

Among other, Chinese export figures, decreasing all through May, showed a decline of 7.5% against the expectation of a 1.8% drop, data from Wednesday reveal. In April, export grew by 8.5%.

During the past three months, export has developed favorably, supporting the Chinese economy, but numbers indicate that the financial recovery in China is beginning to wane.

”Chinese trading data is the latest indicator to show that there are no good news in global demand. There is a giant chasm in the global economy between services and production. This is a warning sign that global growth will abate from hereon out. The question is: How much?” Ben Laidler, global markets strategist at eToro, tells Reuters.