Oil drops on weak corporate data out of China

28 October, 2019

Oil prices fell on Monday after strong gains last week, as data released in China reinforced signs that its economy is slowing, though progress in China-U.S. trade talks has supported prices.

Brent crude was down 34 cents, or 0.4%, at $61.79 a barrel by 0531 GMT, having gained more than 4% last week, its best weekly gain since Sept. 20. West Texas Intermediate (WTI) crude futures were down 27 cents, 0.5%, at $56.39 a barrel, after rising more than 5% last week, also the biggest weekly increase since Sept. 20. Profits at Chinese industrial companies fell for the second straight month in September as producer prices continued their slide, highlighting the impact of a slowing economy and protracted U.S. trade war on corporate balance sheets.

“There have been some small profit-taking sells on the weak China data released on Sunday and unwinding of weekend hedges,” said Stephen Innes, Asia Pacific market strategist at Axi Trader. “But the market remains well supported on the dip,” he said, pointing to signs of progress in China-U.S. trade talks. The two sides issued a statement on Friday saying they are close to finalizing some parts of a trade agreement. U.S. energy companies also reduced the number of oil rigs operating this week, leading to a record 11-month decline as producers follow through on plans to cut spending on new drilling. Russia’s energy ministry said on Friday it is continuing close cooperation with Saudi Arabia and the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC oil producers to enhance market stability and predictability.


Source  
Losing momentum of world markets and economic recovery14 Aug, 2020  

The markets returned to caution Friday, which can be explained by the frustration with new Chinese data, but also by the caution of investors after unsuccessful...

Cold shower for overheated gold and IT stocks12 Aug, 2020  

The world markets are under pressure on Wednesday morning. Negotiations on stimulus packages in the US remain at a standstill, and hopes for a coronavirus vaccine...

Fall of the Euro amid a positive market mood11 Aug, 2020  

Cautious optimism prevails in the markets at the beginning of the week, if we exclude a couple of worrying signs for investors. A wave of purchases continues...


The reasons behind oil growth11 Aug, 2020  

Crude oil gained more ground on Tuesday, with prices underpinned by expectations of U.S. stimulus and a rebound in Asian demand as economies reopen...

Dollar rises on renewed U.S.-Sino tensions7 Aug, 2020  

The U.S. dollar rebounded whilst other major currencies weakened on Friday after President Donald Trump took steps to ban transactions with the Chinese...

Bank of England holds rates steady, but what about economic recovery?6 Aug, 2020  

The Bank of England on Thursday held interest rates steady and maintained its existing level of asset purchases, but warned it is anticipating a slower...


Dollar stumbles as investors await U.S. stimulus breakthrough4 Aug, 2020  

A rebound in the dollar faltered on Tuesday as political wrangling over a U.S. relief plan and the gloomy economic outlook kept investors shy of the currency...

Oil can't find the source of demand3 Aug, 2020  

OPEC and its allies need to find a balance between supporting oil prices and keeping U.S. crude production at bay, a strategist told CNBC this week as the...

Dollar caught a little support from Fed30 Jul, 2020  

The dollar index bounced about 0.4% from a two-year low and the Australian dollar retreated about 0.7% from a 15-month top touched on Wednesday...