Oil prices nudge up on Chinese economic data

Oil rig used to illustrate the story.
Oil rig used to illustrate the story.

Oil prices rose slightly on Monday as Chinese industrial output and retail data topped expectations but gains were capped by overall figures showing the country’s slowest quarterly economic growth in decades.

Brent crude futures LCOc1 rose 40 cents, or 0.6per cent, to $67.12 a barrel by 0923 GMT, while U.S. crude CLc1 was up 19 cents, or 0.32 per cent, at $60.40 a barrel.

Both contracts last week posted their biggest weekly gains in three weeks on cuts in U.S. oil production and diplomatic tensions in the Middle East.

Asian and early European trading was boosted by the more positive Chinese economic data, which may indicate early success in government stimulus efforts and potentially more oil demand in the world’s number two economy.

Analysts at ANZ bank said China’s crude oil imports year to date still looked impressive, even as imports fell in June for a second straight month.

“We believe additional crude oil quota (given) to private refiners should keep imports upbeat in H2 2019,’’ they said.

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

Still economic growth of just 6.2 per cent in the second quarter of 2019.

Advertisement

SGF Campaign AD

The worst in 27 years signalled the impact of trade tensions with Washington and raised the possibility that more incentives might be needed to jumpstart the economy.

Despite a truce agreed between the Chinese and U.S. presidents last month, the trade war remains unresolved.

The Paris based International Energy Agency said in its monthly report on Friday that abundant output and sluggish growth would leave oil markets increasingly over supplied going into 2020.

“As far as 2019 is concerned, the more cautious demand stance is now well established in the market and across most forecasters,’’ consultancy JBC energy said in a note.

Refineries in the path of Tropical Storm Barry continued to operate, although the storm has slashed U.S. Gulf of Mexico crude output by 73 per cent, or 1.38 million barrels per day.

In the Middle East, Iranian President Hassan Rouhani said in a televised speech on Sunday that Iran is ready to hold talks with the United States.

He added that if Washington lifts sanctions and returns to the 2015 nuclear deal it quit in 2019.

Meanwhile, Britain has offered to facilitate the release of the detained Iranian oil tanker Grace 1 if Tehran gave guarantees that it would not go to Syria.

(Reuters/NAN)

Support PREMIUM TIMES' journalism of integrity and credibility

Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.

For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.

By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.

Donate


NEVER MISS A THING AGAIN! Subscribe to our newsletter

* indicates required

DOWNLOAD THE PREMIUM TIMES MOBILE APP

Now available on

  Premium Times Android mobile applicationPremium Times iOS mobile applicationPremium Times blackberry mobile applicationPremium Times windows mobile application

TEXT AD: This space is available for a Text_Ad.. Call Willie on +2347088095401 for more information


All rights reserved. This material and any other material on this platform may not be reproduced, published, broadcast, written or distributed in full or in part, without written permission from PREMIUM TIMES.