Crude oil mixed in Asia on China’s growth concerns

PTI Updated - March 12, 2018 at 04:32 PM.

Oil prices were mixed in Asia today after a batch of downbeat Chinese data highlighted concerns about slowing growth in the world’s second largest economy.

New York’s main contract, West Texas Intermediate light sweet crude for delivery in July, added five cents to $95.82 a barrel while Brent North Sea crude for July delivery shed 15 cents to $103.80.

“A lot of data has come out over the week-end. Dealers are trying to get their heads around China and its import and export data,” Michael McCarthy, chief market strategist at CMC Markets in Sydney, said.

“We’re also nearing the top of the WTI range. Any rise in price is likely to be kept by technical selling.”

Economic data

China over the week-end had published a slew of lukewarm economic indicators that sparked concerns over slower growth in the world’s biggest energy consumer.

On Saturday, the country had reported a sharp slowdown in exports in May compared to the previous month, and an unexpected drop in imports.

Overseas shipments rose just one per cent to $182.8 billion last month, far lower than 14.7 per cent recorded in April, Customs authorities said.

Industrial output

The Chinese Government a day later had announced that its industrial output expanded at a slightly slower pace in May while big ticket investment growth eased.

Industrial production, which measures the output at the country’s factories and mines, rose 9.2 per cent year—on—year in May, marginally weaker than the 9.3 per cent increase in April, the National Bureau of Statistics said.

The figures come amid growing concern over the outlook for China’s economy, which grew 7.8 per cent in 2012, its worst performance in 13 years.

IMF growth forecast

The International Monetary Fund had last month cut its 2013 growth forecast for China to around 7.75 per cent, down from a previously predicted expansion of 8.0 per cent.

Traders were also watching developments between Sudan and South Sudan.

Sudan President Omar al-Bashir has shut the pipeline carrying South Sudanese crude for export, and on Sunday Sudan had suspended nine security and economic pacts with South Sudan.

South Sudan produces about 350,000 barrels of oil per day but depends on Sudan’s export infrastructure.

Published on June 11, 2013 03:55