Oil prices decline due to weak China trade data offsets supply concerns​​​​​​​

Singapore, Aug 8 (BNA): Oil prices slipped on Tuesday after data showed China’s imports and exports fell much more than expected in July, with expected supply tightness limiting the losses.

 

Brent crude futures were down by 29 cents at $85.05 a barrel, while U.S. West Texas Intermediate crude was down by 25 cents at $81.69 a barrel at 0641 GMT.

 

In July, China’s oil imports were 43.69 million metric tons, down 18.8% from June but up 17% from a year ago, according to data from the General Administration of Customs. China’s overall imports declined 12.4% and exports dropped 14.5% from the previous year, with the pace of export decline being the fastest since February 2020, worse than analysts’ expectations, Reuters reported.

 

Analysts are positive on China’s fuel demand outlook for August to early October due to high crude processing rates. The peak season for construction and manufacturing activities in September, along with summer travel demand for gasoline, should contribute to the positive outlook. However, demand is expected to gradually decrease after October.

 

 

I.B.