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Brent crude oil prices fall below $60 on weak China trade data

Reuters  |  SINGAPORE 

By Gloystein

SINGAPORE (Reuters) - Brent fell below $60 per barrel on Monday after Chinese data showed weakening imports and exports in the world's biggest trading nation.

International Brent oil futures were at $59.78 per barrel at 0312 GMT, down 70 cents, or 1.2 percent from their last close.

U.S. Intermediate (WTI) futures were down 63 cents, or 1.2 percent, $50.96 a barrel.

China's December exports fell by 4.4 percent from a year earlier, the biggest monthly drop in two years, official data showed on Monday, pointing to further weakening in the world's second-largest economy. Imports also contracted, falling 7.6 percent, the biggest decline since July 2016.

Traders said the data pulled down and Asian stock markets alike, which had both posted modest gains earlier on Monday.

Economic research firm TS Lombard said were capped as "the world economy is now slowing ... limiting the scope for positive surprises in and hampering inventory reduction."

Ole Hansen, at Denmark's Saxo Bank, said "the deterioration seen recently in forward-looking economic data from the U.S. to and China" meant that the upside for was likely limited to $64 per barrel for Brent and for $55 for WTI.

The weak Chinese data countered general support that have been receiving since the start of the year from supply cuts from the Organization of the Exporting Countries (OPEC) and some non-OPEC allies, including

In the United States, drillers cut four in the week to Jan. 11, bringing the total count down to 873, firm said in a weekly report on Friday.

(Reporting by Gloystein in Singapore; editing by Richard Pullin)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, January 14 2019. 09:05 IST