Oil prices slip as weak China exports highlights trade war impact

Oil prices slip as weak China exports highlights trade war impact

Oil prices fell on Monday after data showing China’s overall exports of goods and services shrank for a fourth straight month, sending shivers through a market already concerned about damage being down to global demand by the Sino-U.S. trade war, Trend with reference to Reuters reports.

Brent futures LCOc1 were down 21 cents, or 0.3%, at $64.18 per barrel by 0220 GMT, after gaining about 3% last week on the news that OPEC and its allies would deepen output cuts.

West Texas Intermediate oil futures CLc1 were down 28 cents, or 0.47% to $58.92 a barrel, having risen about 7% last week on the prospects for lower production from ‘OPEC+’, which is made up of the Organization of the Petroleum Exporting Countries (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% from a year earlier - a sharp reversal from expectations for a 1% rise in a Reuters poll.

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 U.S.-China trade row that has stymied 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 a trade deal that will end tit-for-tat tariffs, but talks have dragged on for months as they wrangle over key details.

Monday’s declines also went against signs on Friday that China was easing its stance on resolving its trade dispute with the United States, confirming on Friday that it was waiving import tariffs for some soybean and pork shipments.

The price drops also put an end to a strong run in previous sessions fuelled by hopes for the OPEC+ production curb deal.

On Friday, those producers agreed to deepen their output cuts from 1.2 million barrels per day (bpd) to 1.7 million bpd, representing about 1.7% of global production.

“What made the announcement constructive ... was the fact that Saudi Arabia said it will produce around 400,000 bpd below its new quota level,” ING Economics said in a note.

“This would effectively take OPEC+ cuts to 2.1 million bpd,” ING said.

Still, U.S. production has surged since the OPEC+ cuts were first introduced in 2017 in an attempt to drain a supply glut that had long weighed on prices. American output has risen even as the drill count has fallen, reflecting more efficient well extraction.

Energy services firm Baker Hughes said in its closely watched weekly drilling report on Friday that the U.S. drill count fell in the week to Dec. 6 - a seventh week of decline.

Drilling companies cut five oil rigs, leaving a total of 661, the lowest since April 2017.

Azerbaijan plans to amend legislation to support local production
Azerbaijan plans to amend legislation to support local production
Weekly review of key developments in financing, agricultural sector of Azerbaijan
Weekly review of key developments in financing, agricultural sector of Azerbaijan
Weekly review of events in financial market of Azerbaijan
Weekly review of events in financial market of Azerbaijan
Loading Bars
Latest
Iranian Energy Exchange announces products for sale on August 10
Exit poll: Lukashenko winning 79.7% of votes at Belarus’ presidential election
All polling stations close in Belarus, vote count in progress
Azerbaijan plans to amend legislation to support local production
Greece registers highest daily tally of COVID 19 cases
Larsi border checkpoint employee tests positive for COVID-19 in Kakheti
Another 8 coronavirus-related fatalities registered in Kyrgyzstan
Bahar Azadi gold coin price falls in Iran
Turkey's domestic car project attracting global players' interest
2 civilians killed, 5 troopers injured as blast rocks western edge of Kabul city
Weekly review of key developments in financing, agricultural sector of Azerbaijan
Gov't allows 101 Georgian citizens to enter Turkey
Pandemic fuels e-commerce boom in Turkey
Kazakhstan's export to Poland slightly down amid COVID-19
Iran's South Pars Gas Company begin repairs
1 dead, at least 20 injured in Washington D.C. shooting
Weekly review of events in financial market of Azerbaijan
Presidential election in Belarus declared valid
Production of major Iranian steel companies up
Volume of wheat purchased in Iran's Markazi Province increases
Prime Minister of India to inaugurate submarine cable connectivity to Andaman & Nicobar Islands 10th August
India begins examination of plane's black box after deadly crash
Doctor infected with COVID-19 working in several clinics in Gori and Tbilisi
5 killed, dozens injured in Istanbul bus crash
Kyrgyzstan's total number of recoveries from COVID-19 surpasses 31,820
"TurAz Qartalı - 2020" exercises continue with participation of helicopters (PHOTO/VIDEO)
5.1-magnitude quake shakes west of Iran
Azerbaijan launches tobacco drying enterprise in Tovuz district (FOTO)
Iran declares amount of investment in Bushehr port
Iran reveals its COVID-19 data for August 9
Azerbaijan reports 308 new COVID-19 recoveries
Samsung remains most-used mobile device in Azerbaijan
Iran's Shahid Salimi TPP boosts its production
US expert: Development of Amulsar mine causes tremendous pollution of fresh-water resources in Caucasus
Turkey reports 1,172 new COVID-19 cases
Georgia reports 9 new cases of COVID-19, 4 recoveries
COVID-19-like pneumonia affected over 1,000 more Kazakhstanis, killing 15
Turnout at Belarus presidential election reaches 45.33%
Iran discloses volume of wheat purchased in Ardabil Province
Azerbaijani government to support entrepreneurs in digital infrastructure dev't
Iran reveals value of exports via Kermanshah Province to Iraq
Special Forces Units also involved in first stage of Azerbaijani-Turkish tactical exercises (PHOTO/VIDEO)
Saffron to be auctioned in Iran
Azerbaijan reveals daily crude oil production for July 2020
Early voting turnout at 41.7% in Belarus
Iranian currency rates for August 9
Polling stations at Belarus presidential election open at 8:00
Armenia violates ceasefire with Azerbaijan 28 times
Export of steel from Turkey abroad in 1H2020 shrinks
Geostat reveals inflation rates in Georgia in June 2020
South Africa's COVID-19 death toll exceeds 10,000
EU Ambassador: Uzbekistan is one of key countries in Europe-Asia Connectivity Strategy
New COVID-19 cases detected in Kazakhstan in past day
Esper: U.S. will cut troop levels in Afghanistan to 'less than 5,000'
Law enforcers regain control of Beirut’s center, ministries captured by protesters
Chinese mainland reports 23 new confirmed COVID-19 cases
Ukraine president says Kyiv staying out of U.S. internal politics, elections
U.S. sets record as coronavirus cases top 5 million
Twitter, TikTok held preliminary talks about potential combination: WSJ
Brazil surpasses 100,000 deaths, 3 mln cases of COVID-19
Trump signs orders to extend certain COVID-19 relief after Congress fails to reach deal
Turkey reports 1,172 new COVID-19 cases, 239,622 in total
Czech apartment fire kills 11, including three children
Moscow's death toll from confirmed coronavirus cases rises by 12 to 4,572 - crisis center
WHO reports one-day surge in coronavirus cases by over 284,000
Plane crashes in Portuguese-Spanish joint fire operation, one killed
Lebanese PM says only way out of crisis is holding early elections: statement
Over 230 injured in Beirut protests - Lebanese Red Cross Society
Ireland reports highest number of new COVID-19 cases since early May
Beirut explosion death toll rises to 158, over 6,000 injured: Health ministry
Android goes on being most popular operation system in Azerbaijan
Turkey records decline in carpet export in 1H2020
Official: Epidemiological situation in Georgia is manageable and under control
Iranian mayors express readiness to help Beirut after blast
Kazakhstan sends military medical team to Lebanon after Beirut blast
Protesters storm Lebanon's Foreign Ministry
Oil spill threatens ecological disaster as Mauritius declares emergency
Belarus reports 124 new COVID-19 cases, total reaches 68,738
Azerbaijani president congratulates president of Singapore
Azerbaijani MFA: Armenia is making attempts to illegally resettle Armenians from Middle East to Azerbaijan's Nagorno-Karabakh and adjacent regions
Iran declares amount of funds to be paid for construction of Ardabil-Mianeh railway
Iran Red Crescent delivers 15 tons of food to Lebanon Red Cross
Turkey to allocate Port of Mersin for Beirut's use, top Turkish official says
PM Gakharia: Georgia ready for NATO membership
Libya reports 200 new COVID-19 cases
Weekly review of Azerbaijani currency market (Aug. 3-7)
Iran announces balance of bank loans
Total COVID-19 recoveries number exceeds 30,000 in Azerbaijan
Uzbekistan's capital to establish co-op with Japan's Nagoya city
Georgia becomes net importer of apples in 2019/2020 season
Iran's parliament to review stock exchange, foreign currency rates
Ferrero to purchase hazelnuts from Georgian Hazelnut Producers Association
Number of trucks under repair in Iran announced
Weekly review of Azerbaijan's precious metals market (July 31-August 7)
Uzbekistan drills new well at gas field in country's Bukhara region
Turkmengas announces tender for purchase of electrical equipment
Turkmenistan’s Oil Refineries Complex opens tender for gasoline purchase
Kazakhstan, Switzerland trade turnover plummets during COVID-19
Azerbaijan's fund reveals amount of compensations paid to depositors of liquidated banks
Transit-oriented development centers to be established in Iran
All news