Petroleum futures wandered down sharply on Monday, as stress over energy need resurfaced on frustrating trade information from China.
After some favorable spells in current sessions in the middle of hopes the OPEC-led supply cuts and optimism about U.S.-China trade conversations, petroleum prices have pulled back on concerns about near term energy demand.
Petroleum futures for February ended down $1.08, or 2.1%, at $50.51 a barrel.
After nine successive days of gains, petroleum futures ended down $1.00, or 1.9%, at $51.59 a barrel on Friday, due largely to profit taking and on issues about economic downturn in China.
On Monday, information from General Administration of Customs revealed China’s exports and imports in December decreased at the worst rates in 2 years, adding to evidence of a fast downturn in the economy amidst the trade war with the US and compromising global activity.
Exports dropped 4.4% year-on-year in December, the information showed. That was in contrast to the 3% gain financial experts had actually anticipated. Imports decreased 7.6% from a year ago, defying expectations for a 5% rise. Both exports and imports result was the worst considering that 2016. In December, the trade surplus was $57.1 billion.
Saudi Energy Minister Khalid al-Falih stated at a conference in Abu Dhabi that the oil market was “on the best track” and there was no requirement for an extraordinary OPEC conference before its next organized gathering in April.
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