Oil prices nudge up on Chinese economic data

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Oil prices rose slightly on Monday as Chinese industrial output and retail data topped expectations but gains were capped by overall figures showing the country’s slowest quarterly economic growth in decades.

Brent crude futures rose 40 cents, or 0.6 per cent, to $67.12 a barrel by 0923 GMT, while US crude was up 19 cents, or 0.32 per cent, at $60.40 a barrel
Both contracts last week posted their biggest weekly gains in three weeks on cuts in US oil production and diplomatic tensions in the Middle East.
Asian and early European trading was boosted by the more positive Chinese economic data, which may indicate early success in government stimulus efforts and potentially more oil demand in the world’s number two economy.

Despite a truce agreed between the Chinese and US presidents last month, the trade war remains unresolved.

The Paris-based International Energy Agency said in its monthly report on Friday that abundant output and sluggish growth would leave oil markets increasingly over-supplied going into 2020.
“As far as 2019 is concerned, the more cautious demand stance is now well established in the market and across most forecasters,” consultancy JBC energy said in a note.

Source:The Economist

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