Brent crude lost momentum with the start of the week, heading to lowest in more than two years below $97 on Monday. The reason behind today`s lackluster performance was a raft of weak economic data from China, the world`s biggest oil consumer.
The oil sentiment is weighed again by prospects for demand in china, as the country`s Industrial production growth slowed to its lowest level since pre-crisis levels, according to data released Saturday, along with weaker fixed-asset investment, retail and real estate sales reports, adding pressure on Beijing to increase stimulus measures to spur growth in the country.
According to the National Bureau of Statistics, industrial production rose 6.9% from a year earlier, camped with the 9.0% in July and analysts` average forecast of 8.8%.
Fixed-asset investment in nonrural China rose 16.5% from a year ago, slower than the 17.0% increase in July. Separately, retail sales also expanded 11.9% from a year ago, yet down from the 12.2% level in July.
Later this week, investors will be watching the Federal Reserve`s policy meeting for trading clues. The firmer US Dollar is still taking a toll on dollar-denominated commodities. The USDIX stood around 84.33 and pushing slightly off the 14-month high of 84.51 hit last Tuesday.
- West Texas Intermediate for October delivery fell 0.88% to $91.46 a barrel on the New York Mercantile Exchange
- Brent for October delivery fell 0.56% to $96.57 a barrel on the ICE Exchange in London