Oil Prices Lower on Easing of Middle East Tensions and Lower Chinese Data

Oil prices fell on Monday on mixed Chinese economic data and signs that the impact of a tropical storm on U.S. Gulf Coast production and refining would be short-lived.

West Texas Intermediate graph

Chinese industrial output and retail data topped expectations, but overall figures showed the country’s slowest quarterly economic growth in decades, dimming the outlook for crude demand.

Brent crude futures LCOc1 dropped 12 cents to $66.60 a barrel by 12:04 p.m. EDT (1604 GMT), while U.S. crude CLc1 shed 40 cents to $59.81 a barrel.

Crude oil imports from China fell in June for a second straight month, but analysts at ANZ bank said China’s imports year-to-date still looked strong.

China’s oil throughput rose to a record 13.07 million barrels per day in June, up 7.7% from a year earlier, following the start-up of two new large refineries, official data showed.

via Reuters

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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 has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. 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