Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Crude oil futures retreat after China trade data

Published 09/08/2014, 04:00 AM
Updated 09/08/2014, 04:00 AM
Crude oil futures slump amid global demand concerns

Investing.com - Crude oil futures declined on Monday, after data showed that China's exports rose more than forecast in August while imports fell unexpectedly, underlining concerns over the health of the world's second largest economy.

On the New York Mercantile Exchange, crude oil for delivery in October shed 0.28%, or 27 cents, to trade at $93.03 a barrel during European morning hours.

Prices held in a narrow range between $92.96 and $93.61 a barrel. Futures were likely to find support at $92.68 a barrel, the low from September 2 and resistance at $94.99 a barrel, the high from September 5.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for October delivery slumped 0.45%, or 45 cents, to trade at $100.38 a barrel.

London-traded Brent prices hit a 16-month low of $100.17 on September 2, as ample global supplies and concerns about weak demand drove prices lower.

Official trade data released Monday showed that Chinese exports climbed 9.4% from a year earlier, beating expectations for an 8% increase, however imports declined 2.4% last month, disappointing forecasts for a 1.7% gain.

The country’s trade surplus widened to a record high of $49.8 billion in August from $47.3 billion in July, compared to estimates for a surplus of $40.0 billion.

A slowdown in domestic demand indicated a recovery in the broader economy remains fragile and may need further government stimulus.

Meanwhile, concerns over the health of the U.S. labor market increased after data released Friday revealed that the economy added 142,000 jobs in August, the lowest amount in eight months and less than the expected increase of 225,000.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

The report also showed that the U.S. unemployment rate ticked down to 6.1% last month from 6.2%, but that was mostly due to more people dropping out of the labor force.

The U.S. and China are the world’s two largest oil consuming nations.

A broadly stronger U.S. dollar also weighed, as the greenback rallied by the most in eight months against the pound to hit a 10-month high after a poll showed the "yes" to Scottish independence campaign on 51% against 49% for the "no" camp.

Oil prices typically weaken when the U.S. currency strengthens as the dollar-priced commodity becomes more expensive for holders of other currencies.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.