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Oil Prices Decrease on Back of Chinas Weak Reading

Oil prices are falling on Monday after data showed that total Chinese exports of goods and services fell for the fourth consecutive month in November, raising concerns over the market, which is already worried about weakening global demand due to the U.S.-China trade war.

oil rates tumblePhoto: Pixabay

Brent crude oil futures with delivery in February dropped by 0.59 percent, to $64,02 per barrel, while U.S. light oil futures with delivery in January went down by 0.74 percent, to $58,76 per barrel at 9.05 GMT. 

Customs data released on Sunday showed that China’s November exports contracted by 1.1 percent on year-on-year basis, while analysts surveyed by Reuters expected a 1 percent increase.

Recall OPEC and its allies agreed last week to deepen oil supplies cuts by additional 500,000 bpd in the first quarter 2020, but refrained from promises regarding the further stimulus after March 2020.

The number of active oil rigs in U.S. extended lowering for the 7th week in a row, decreasing in by 5 up to 663 in the week, which ended on December 6, marking thus the lowest level since April 2017, according to Baker Hughes report.