Business Express is an online portal that covers the latest developments in the world of business and finance. From startups and entrepreneurship to mergers and acquisitions, Business Express provides reporting on the stories that matter most to business leaders and decision-makers.The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
2023 05 09T004259Z 1 LYNXMPEJ4800I RTROPTP 4 RUSSIA ENVIRONMENT - Business Express
FILE PHOTO: Flue gas and steam rise out of chimneys and smokestacks of an oil refinery during sunset on a frosty day in the Siberian city of Omsk, Russia, February 8, 2023. REUTERS/Alexey Malgavko

Oil eases on lackluster Chinese import data, U.S. economy woes


Oil eases on lackluster Chinese import data, U.S. economy woes

By Arathy Somasekhar

HOUSTON (Reuters) -Oil prices fell on Tuesday, retreating from strong gains of the previous two sessions due to lackluster Chinese import data and worries about U.S. economic growth, banking sector turmoil and debt-ceiling negotiations.

Brent crude was down 86 cents, or 1.1%, at $76.10 a barrel by 11:06 a.m. ET (15:07 GMT). U.S. West Texas Intermediate (WTI) crude fell 83 cents, or 1.1%, $72.34.

“We have seen weaker-than-expected demand in China… and if you were to layer on to that the fears that Congress won’t act to resolve the debt ceiling, combined with a regional banking crisis, it leads to additional fears of an economic slowdown,” said Andrew Lipow, president of Lipow Oil Associates in Houston.

On Monday, both benchmarks rose more than 2% on hopes the U.S., the world’s biggest oil consumer, could avoid a harsh recession and as some traders viewed crude’s three-week slide as overdone.

But data on Tuesday showed China’s imports contracted sharply in April, while exports rose at a slower pace, further signs of feeble domestic demand that heaped pressure on an economy struggling in the face of cooling global growth.

“Crude looks to be range bound between $70 and $82 until we see clarification that Asian demand is intact,” said Dennis Kissler, senior vice president of trading at BOK Financial.

Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!


By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email.

Markets were watching U.S. President Joe Biden and top Republican lawmakers’ comments on raising the $31.4 trillion U.S. debt ceiling, fearing an unprecedented default if Congress does not act in three weeks.

U.S. consumer price index (CPI) figures for April are due on Wednesday and could determine the Federal Reserve’s next interest rate decision. The Fed raised interest rates last week and dropped guidance about the need for future hikes.

Last month, U.S. consumers said they expected slightly lower inflation in a year’s time, a report from the New York Federal Reserve showed on Monday.

“The market is cautious today ahead of the inflation data … With net long positions declining sharply over the last two weeks, a lot of traders are already out of the market, so volumes are low.” said Suvro Sarkar, lead energy analyst at DBS Bank.

Also supporting prices, wildfires prompted oil producers in the Canadian province of Alberta to shut in at least 280,000 barrels of oil equivalent per day, more than 3% of Canada’s output.

Bank of America lowered its average Brent price forecast to $80 a barrel for 2023 from $88, citing negative macro trends, tighter credit conditions and higher interest rates that could pressure demand.

(Reporting by Arathy Somasekhar in Houston, Additional reporting by Ahmad Ghaddar in London, Katya Golubkova in Tokyo and Emily Chow in SingaporeEditing by Kirsten Donovan, David Goodman and David Gregorio)

Recent Post: