Oil slips as weak China exports highlight trade war impact

By Jessica Resnick-Ault NEW YORK (Reuters) - Oil prices fell on Monday after data showed Chinese exports declined for a fourth straight month, sending jitters through a market already concerned about damage to global demand by the trade war between Washington and Beijing.

Reuters December 10, 2019 00:06:55 IST
Oil slips as weak China exports highlight trade war impact

Oil slips as weak China exports highlight trade war impact

By Jessica Resnick-Ault

NEW YORK (Reuters) - Oil prices fell on Monday after data showed Chinese exports declined for a fourth straight month, sending jitters through a market already concerned about damage to global demand by the trade war between Washington and Beijing.

Brent futures were down 15 cents, or 0.25%, at $64.24 per barrel by 12:29 p.m. EDT (1629 GMT), after gaining about 3% last week on news that OPEC and its allies would deepen output cuts.

West Texas Intermediate oil futures were down 13 cents, or 0.24% to $59.07 a barrel, having risen about 7% last week on the prospects for lower production from OPEC+, which is made up of the Organization of the Petroleum Exporting Countries and associated producers including Russia.

Monday's sudden chill came after customs data released on Sunday showed exports from China in November fell 1.1% from a year earlier, confounding expectations for a 1% rise in a Reuters poll.

"That China trade data is a factor, certainly," said John Kilduff, a partner at Again Capital.

Washington and Beijing have been trying to agree a trade deal that will end tit-for-tat tariffs, but talks have dragged on for months.

"We're coming up to a bit of a precipice, with the potential for new tariffs to be slapped on Sunday, so this is going to be an intense week," Kilduff said. Additional tariffs could weigh on the demand outlook for crude, he added.

Beijing hopes an agreement with the United States can be reached as soon as possible, China's Assistant Commerce Minister Ren Hongbin said on Monday.Monday's declines also went against signs on Friday that China was easing its stance on resolving the trade dispute with the United States, confirming that it was waiving import tariffs for some soybean and pork shipments.

The price drop also put an end to a strong run in previous sessions fuelled by hopes for the OPEC+ production curb deal.

On Friday, OPEC+ agreed to deepen their output cuts from 1.2 million barrels per day (bpd) to 1.7 million bpd, representing about 1.7% of global production.

"This decision crystallises an important shift in strategy to managing short-term physical imbalances rather than trying to correct perceived long-term imbalances through open-ended commitments," Goldman Sachs said in a note.

The bank revised its Brent spot price forecast to $63 per barrel for 2020, up from a previous estimate of $60.

BofA Merrill Lynch said in a note that strong compliance with the OPEC+ along with positive economic developments such as a U.S.-China trade deal could push Brent to $70 a barrel before the second quarter of 2020.

(Reporting by Jessica Resnick-Ault; Additional reporting by Aaron Sheldrick and Noah Browning; Editing by David Evans and Lisa Shumaker)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

More than 20 killed in Mali airstrike on wedding ceremony - health worker
World

More than 20 killed in Mali airstrike on wedding ceremony - health worker

DAKAR (Reuters) - More than 20 people, including children, were killed in an airstrike during a wedding ceremony in central Mali on Sunday, a health worker with knowledge of the attack told Reuters. (Reporting By Edward McAllister; Editing by Aaron Ross)

Bleak start to new year for Britain as it enters third lockdown
World

Bleak start to new year for Britain as it enters third lockdown

By Estelle Shirbon and Natalie Thomas LONDON (Reuters) - Britain began its third COVID-19 lockdown on Tuesday with the government calling for one last major national effort to defeat the spread of a virus that has infected an estimated one in 50 citizens before mass vaccinations turn the tide. Finance minister Rishi Sunak announced a new package of business grants worth 4.6 billion pounds ($6.2 billion) to help keep people in jobs and firms afloat until measures are relaxed gradually, at the earliest from mid-February but likely later

France cranks up COVID-19 vaccine rollout to deliver shots faster
World

France cranks up COVID-19 vaccine rollout to deliver shots faster

By Dominique Vidalon and Sudip Kar-Gupta PARIS (Reuters) - France is stepping up its COVID-19 vaccine rollout by widening the first target group to include more health workers and simplifying a cumbersome process to deliver shots more quickly, Health Minister Olivier Veran said on Tuesday. France's inoculation campaign got off to a slow start, hampered in part by red tape and President Emmanuel Macron's decision to tread warily in one of the world's most vaccine-sceptical countries. France has fallen behind neighbours such as Britain and Germany, and the president is now demanding the vaccination programme be expedited