Oil Drops After Japanese Data Lowers Demand Expectations

Oil markets remained subdued in early trading in Asia on Friday after weak data from Japan reinforced concerns over global economic growth.

Japan’s core consumer prices fell 0.1 percent in August from a year earlier, government data showed on Friday, marking the first year-on-year drop since April 2013. The index includes oil products but excludes fresh food prices.

HSBC cautioned not to over-focus on weak China data, arguing that fully developed economies were also slowing.

“It turns out that developed market imports haven’t been anywhere near as robust as relatively upbeat local demand data would suggest… For all their recent swagger, developed markets are hardly firing on all cylinders. So, don’t just blame China,” the bank said on Friday.

Globally traded Brent futures were at $48.13 per barrel at 0049 GMT (2049 EDT), down four cents from their last close. U.S. West Texas Intermediate (WTI) futures were slightly firmer, at $44.95 a barrel, up 4 cents from their last settlement.

Via Reuters

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza