© Reuters. UPDATE 5-Oil slips as weak China exports highlight trade war impact
* Brent, WTI slide after gains last week
* Chinese exports fall, rekindle worries about trade war impact
* China’s exports in Nov fall 1.1% y/y vs expectations of increase (Updates prices)
By Noah Browning
LONDON, Dec 9 (Reuters) – Oil prices fell on Monday after data showed Chinese exports declined for a fourth straight month, sending jitters through a market already concerned about damage to global demand by the trade war between Washington and Beijing.
Brent futures were down 60 cents, or 0.93%, at $63.79 per barrel by 1315 GMT, after gaining about 3% last week on news that OPEC and its allies would deepen output cuts.
West Texas Intermediate oil futures were also down 60 cents, or 1.01% to $58.60 a barrel, having risen about 7% last week on the prospects for lower production from “OPEC+”, which is made up of the Organization of the Petroleum Exporting Countries and associated producers including Russia.
Monday’s sudden chill came after customs data released on Sunday showed exports from China in November fell 1.1% from a year earlier, confounding expectations for a 1% rise in a Reuters poll. is clearly not immune to either the U.S. trade tariffs, or the lingering slowdown in the broader global economy,” said Jeffrey Halley, senior market analyst at OANDA.
Washington and Beijing have been trying to agree a trade deal that will end tit-for-tat tariffs, but talks have dragged on for months as they wrangle over details.
Beijing hopes an agreement with the United States can be reached as soon as possible, China’s Assistant Commerce Minister Ren Hongbin said on Monday. declines also went against signs on Friday that China was easing its stance on resolving the trade dispute with the United States, confirming that it was waiving import tariffs for some soybean and pork shipments. price drop also put an end to a strong run in previous sessions fuelled by hopes for the OPEC+ production curb deal.
On Friday, OPEC+ agreed to deepen their output cuts from 1.2 million barrels per day (bpd) to 1.7 million bpd, representing about 1.7% of global production. decision crystallises an important shift in strategy to managing short-term physical imbalances rather than trying to correct perceived long-term imbalances through open-ended commitments,” Goldman Sachs (NYSE:) said in a note. bank revised its Brent spot price forecast to $63 per barrel for 2020, up from a previous estimate of $60.
BofA Merrill Lynch said in a note that strong compliance with the OPEC+ along with positive economic developments such as a U.S.-China trade deal could push Brent to $70 a barrel before the second quarter of 2020. CHART: Brent oil may retest resistance at $64.63
CHART: U.S. oil may retest resistance at $59.75
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