Oil turned lower as bearish sentiment rippled through markets following a larger-than-expected drop in China’s trade data.
(Bloomberg) — Oil turned lower as bearish sentiment rippled through markets following a larger-than-expected drop in China’s trade data.
West Texas Intermediate fell to near $81 a barrel. China’s trade plunged in July as slowing global demand clouded the outlook for exports, while its oil imports slipped to a six-month low. The dollar climbed and stocks fell as the trade figures fanned fresh concerns about the Chinese economy.
Oil rallied to the highest level since April early in Monday’s trading, but pessimism around the global economy and higher interest rates have stalled that rally. Crude’s big three monthly reports — those from the International Energy Agency, OPEC, and the Energy Information Administration — will offer further updates on the health of the market over the rest of this week.
Read More: China’s Oil Imports Slip to Six-Month Low on Sluggish Recovery
“Trade data this morning makes for poor reading,” said John Evans, an analyst at brokerage PVM Oil Associates. “It still appears as if we are unable to escape the flux that China’s industrial complex finds itself in.”
Investors will also be watching the US consumer price index for July on Thursday for clues on the path forward for monetary tightening. Aggressive interest-rate hikes have weighed on commodities.
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