West Texas Intermediate and Brent crude fell on Tuesday as consumer
inflation in China slowed to the lowest in five years last month,
reigniting fears about oil demand in the world’s second biggest-economy
and oil consumer.
US crude for delivery in March traded 1.55% lower at $52.04 per barrel at 8:42 GMT, having shifted in a daily range of $52.65-51.91. The contract rose for a third straight session on Monday, gaining 2.26% to $52.86, after it closed the previous week 7.2% higher.
Meanwhile on the ICE, Brent for settlement in the same month traded 1.18% lower at $57.65 a barrel, holding in a daily range of $57.90-$57.41. The European crude benchmark rose 0.93% on Monday to $58.34 after it gained ~9% last week, the best weekly showing since February 2011. Brent traded at a premium of $5.61 to its US counterpart, up from yesterday’s settlement at $5.48.
Data by China’s National Bureau of Statistics showed that consumer prices rose by a worse-than-expected 0.3% on a monthly basis in January, while year-on-year the Consumer Price Index gained 0.8%, the slowest growth in five years. Analysts had projected a drop to 1.0% from December’s 1.5% increase.
Moreover, factory gate prices slid for a 35th straight month, with the corresponding Producer Price Index tumbling by an annualized 4.3%, spurring expectations for further monetary easing by the People’s Bank of China and giving policy makers enough room to act.
Oil prices drew support on Monday after an OPEC report showed producers outside the group are expected to pump around 400 000 barrels per day of crude less than previously expected, the biggest downward revision since at least 2008, as low prices force US producers to scale back output.
Read more Click here / www.trade4x.net
US crude for delivery in March traded 1.55% lower at $52.04 per barrel at 8:42 GMT, having shifted in a daily range of $52.65-51.91. The contract rose for a third straight session on Monday, gaining 2.26% to $52.86, after it closed the previous week 7.2% higher.
Meanwhile on the ICE, Brent for settlement in the same month traded 1.18% lower at $57.65 a barrel, holding in a daily range of $57.90-$57.41. The European crude benchmark rose 0.93% on Monday to $58.34 after it gained ~9% last week, the best weekly showing since February 2011. Brent traded at a premium of $5.61 to its US counterpart, up from yesterday’s settlement at $5.48.
Data by China’s National Bureau of Statistics showed that consumer prices rose by a worse-than-expected 0.3% on a monthly basis in January, while year-on-year the Consumer Price Index gained 0.8%, the slowest growth in five years. Analysts had projected a drop to 1.0% from December’s 1.5% increase.
Moreover, factory gate prices slid for a 35th straight month, with the corresponding Producer Price Index tumbling by an annualized 4.3%, spurring expectations for further monetary easing by the People’s Bank of China and giving policy makers enough room to act.
Oil prices drew support on Monday after an OPEC report showed producers outside the group are expected to pump around 400 000 barrels per day of crude less than previously expected, the biggest downward revision since at least 2008, as low prices force US producers to scale back output.
Read more Click here / www.trade4x.net
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