TOKYO – Oil prices fell on Monday after data showing China’s overall exports of goods and services shrank for the fourth straight month, sending shivers through the market already concerned about damage to global demand by the trade war between the United States (US) and China.
Brent futures were down 21 cents, or 0.3 percent, at $64.18 per barrel by 0220 GMT, after gaining about three percent last week on the news that Organization of the Petroleum Exporting Countries or OPEC and its allies would deepen output cuts.
West Texas Intermediate oil futures were down 28 cents or 0.47 percent to $58.92 a barrel, having risen about seven percent last week on the prospects for lower production from “OPEC+,” which is made up of the OPEC and associated producers including Russia.
Monday’s sudden chill came after customs data released on Sunday showed exports from the world’s second-biggest economy in November fell 1.1 percent from a year earlier – a sharp reversal from expectations of a one-percent rise.
The weak start to the week came despite data showing China’s crude imports jumped to a record, revealing just how deep jitters are embedded in the market over the US-China trade row which has interfered with global growth and oil demand.
The sagging export data is “a casualty again of the protracted trade war,” said Stephen Innes chief Asia market strategist at AxiTrader.
Washington and Beijing have been trying to agree on a trade deal that will end tit-for-tat tariffs, but talks have dragged on for months as they wrangle over key details. (Reuters)
