Oil prices plummeted to the lowest level in months on Monday morning after worse-than- expected data from China showed its economy unexpectedly slowed last month.
Gas prices have fallen in tandem with oil prices for 61 straight days.
The price of West Texas Intermediate fell to $87 per barrel on Monday, its lowest level since January.
China's economy slowed in July amid ongoing Covids, property market uncertainty and global recession fears, prompting a surprise interest rate cut from the People's Bank of China.
Oanda analyst Craig Erlam blamed the disappointing data for the morning sell-off in commodities and said the figures are a concern for oil demand.
With Covid cases continuing to rise in China, Erlam expects the downward pressure on oil prices to intensify in the coming weeks.
Saudi Aramco said in its earnings release this weekend that it expects oil demand to grow for the rest of the decade despite the downward economic pressures on short-term global forecasts.
Oil prices have fallen since global recession fears helped push U.S. inflation to a 40-year high. Since its high in March, the price of oil has fallen. The prices are still up. The S&P 500 Energy Index is up 41% this year, while the broader S&P has fallen.
Erlam reports that Saudi Aramco's profits soared from a year ago.
Iranian officials said on Monday that they would respond to a proposed deal that could help restore the nation's global energy exports. According to Erlam, the deal could help oil prices fall below $90.
Gas prices have fallen along with oil prices. The average price at the pump fell for the 61st day in a row to $3.92 per gallon, down from an all-time high of more than $5 in March.
Analysts predict that oil prices will rebound later in the year.
There would be a threat to the U.S. economic recovery.
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