2023-08-08 11:50:00
London: Crude prices lost ground on Tuesday, weighed down by investor risk aversion and worries regarding Chinese demand following the release of disappointing trade data in the country. Brent BRENT Brent or North Sea crude is a variation of crude oil serving as a benchmark in Europe, listed on the InterContinentalExchange (ICE), a stock exchange specializing in energy trading. It has become the first international standard for setting oil prices. of the North Sea, for delivery in October, lost 1.28% to 84.25 dollars.
Its American equivalent, the barrel of West Texas Intermediate (WTI WTI West Texas Intermediate (WTI), also known as Texas Light Sweet, is a variation of crude oil that serves as a standard in pricing crude oil and as a commodity for oil futures contracts with the Nymex (New York Mercantile Exchange). ), the stock exchange specializing in energy.), for September delivery, was down 1.22% at $80.94.
???????? Oil prices faltered “due to weak Chinese trade data”, comment DNB analysts.
China’s exports slumped in July to experience their steepest decline in more than three years, penalized by sluggish demand abroad and the economic slowdown in the country, which are weakening thousands of companies.
“As the Chinese economy slows, traders are lowering their forecasts for global oil demand, which is translating into lower prices,” said Ricardo Evangelista, analyst at ActivTrades.
DNB analysts further note “a significant drop in crude oil imports (from China, editor’s note) on a monthly basis”.
???? The Chinese trade data has also triggered a return of concerns regarding the health of the global economy and therefore of risk aversion among investors, who are abandoning assets such as oil, which are more volatile, and are turning to stocks. havens like the dollar.
???? However, as black gold prices are denominated in greenbacks, an appreciation of the American currency discourages oil purchases, while a weaker dollar strengthens demand.
???????? Crude losses were however limited “by the tightening of supply resulting from production cuts from Russia and Saudi Arabia”, tempers Mr. Evangelista.
???????? Last week, Saudi Arabia indeed announced the extension of its voluntary production cuts of one million barrels per day for another month. Russia followed suit, announcing a reduction in its oil exports of 300,000 barrels per day for September.
(c) AFP
Oil drops following Chinese trade data
Barrel price community
1691499001
#Oil #dips #Chinese #trade #data
