Concerns over Chinese economic growth weighed on the commoditiy markets on Wednesday. But the continuing tension over Ukraine has kept prices cushioned against sharp losses.
Mixed Sentiment is dominating the energy markets before the holiday weekdend. Oil futurs consolidated on the New York Mercantile Exchange today, with West Texas Intermediate holding slightly below $104 a barrel as traders weighed China`s economic grwoth amid prospects of stimulus to boost growth, which eased to its weakest rate in six quarters.
Today, China`s Gross Domestic Product (GDP) rose 7.4% in the three months through March, down from 7.7% in the last quarter of 2013. The reading was fractioanlly above the 7.3% average growth analsyts had expected.
However, NYMEX crude was also buoyed by the US retail retail sales, which rebounded better than expected.
Although a brighter outlook for the world`s largest economy can point to a possible rebound in demand for crude oil, the strong US currency can also weigh dollar-denominated commodities.