Oil gives up gains on weak Chinese data and US inventories rise

2019-08-14 12:43:04 GMT (Economies.com)
Oil gives up gains on weak Chinese data and US inventories rise

Oil fell as the European market opened today, after posting strong gains in the last 4 days, due to profit-taking and weak Chinese data, which have renewed the slowdown fears over the Chinese economy, in addition to an unexpected rise in US oil inventories according to preliminary data by the API.

 

As of 09:50 GMT, WTI fell to $56.35 a barrel from the opening of $56.66, with a high of $56.81 and a low of $ 56.24.

 

Brent fell to $60.75 a barrel from the opening of $61.02, with a high of $61.08 and a low of $60.56.

 

WTI closed yesterday higher by 3.6%, its fourth daily gain in a row, hitting a two-week high at $57.43 a barrel, and Brent futures jumped 4.4%, its largest daily gain since January 9 last.

 

This gains drew support from the US' concession in the trade war with China, which is a positive sign on a near trade deal between the two sides, as Trump’s administration decided to delay the decision to impose a 10% tariffs increase on Chinese imports worth $300 billion to mid-December instead of September 1st.

 

Chinese Ministry of Commerce stated that trade officials from the two countries spoke by phone and agreed to speak again within two weeks.

 

The high sentiment in global markets were after weak Chinese data today, which have renewed the slowdown fears over the Chinese economy.

 

China released its reading for the industrial production y/y reading, which rose by 4.8% vs. 6.3%, the slowest pace in more than 17 years, in addition to a slowdown in retail sales in the same period

 

Yesterday, American Petroleum Institute (API) released preliminary data today which showed that US oil inventories rose by about 3.7 million barrels in the week ending in August 3rd, beating forecasts of a decline by 2.7 million barrels.

 

Which is the first weekly increase in the last nine weeks, and indicates the slowing demand in the US.

 

Meanwhile, investors are anticipating the official data of the EIA weekly report on US inventories and production levels later today.

 
 
 
  Symbol Last Change Chg.%
1.1091
-0.0102
0.9113%
1.2147
0.0087
0.7243%
17.104
0.128
0.753%
54.800
0.550
1.014%
58.65
0.42
0.72%
1512.265
14.840
0.991%
 
 
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