Oil futures contracts closed lower on Monday (7) pressured by concerns about Chinese demand, after disappointment with the Asian country’s trade balance. The weakening dollar, in turn, limited losses.
December WTI crude closed down 0.88% ($0.82) at $91.79 a barrel on the New York Mercantile Exchange (Nymex), while Brent for January 2023 was down 0.66 % (US$0.65), at US$97.92 a barrel, on the Intercontinental Exchange (ICE).
China’s exports unexpectedly dropped in October. Capital Economics points out that these latest data point to weak demand for commodities both domestically and globally. “Given that we do not expect the slowdown in global economic growth to arrive until early next year, we think demand for commodities will remain subdued for some time longer, weighing on prices,” says the consultancy.
“Oil’s initial boost from a weakening dollar could not last as energy traders debate whether optimism was premature about easing Covid-19 rules in China,” said economist Edward Moya of Oanda.
On the supply side, despite a prolonged streak of strong earnings, shale companies are slowing their activity in the oil fields, keeping US oil production largely flat and offering little relief from tight global markets.
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.
