👀 Ones to watch: The MOST undervalued stocks to buy right nowSee Undervalued Stocks

Brent oil futures drop more than 1% amid demand concerns

Published 12/09/2013, 10:33 AM
Brent oil futures drop more than 1% amid demand concerns
LCO
-
Investing.com - London-traded Brent oil futures fell sharply on Monday, after disappointing German factory data fuelled concerns over a slowdown in demand from the euro zone’s largest economy.

On the ICE Futures Exchange in London, Brent oil futures for January delivery tumbled 1.3% during U.S. morning trade to trade at USD110.15 a barrel. Brent futures fell to a session low of USD109.93 a barrel earlier, the weakest level since December 2.

Data released earlier showed that German industrial production unexpectedly declined by 1.2% in October, missing expectations for a 0.8% rise.

Elsewhere, on the New York Mercantile Exchange, U.S. oil futures for delivery in January traded at USD97.51 a barrel, down 0.15%. New York-traded oil futures traded in a range between USD97.32 a barrel and USD97.96 a barrel.

The January contract rallied to USD98.07 a barrel on Friday, the highest since October 29, before settling at USD97.65 a barrel, up 0.28%.

Nymex oil futures were likely to find support at USD97.08 a barrel, the low from December 6 and resistance at USD98.51 a barrel, the high from October 29.

The spread between the Brent and U.S. crude contracts narrowed to USD12.52 a barrel.

Friday’s upbeat U.S. jobs data continued to support sentiment. The U.S. economy added 203,000 jobs in November, well above expectations for jobs growth of 180,000. The unemployment rate fell to a five-year low of 7.0%.

Meanwhile, in China, data released on Sunday showed that China’s trade surplus widened to USD33.8 billion last month from a surplus of USD31.1 billion in October, compared to estimates for a surplus of USD21.7 billion.  

Chinese exports climbed 12.7% from a year earlier, beating expectations for a 7.1% increase and following a 5.6% gain in October. Imports rose 5.3%, compared to forecasts for a 7.2% increase.

The data showed that China imported 23.56 million metric tons of crude in November, or 5.73 million barrels a day, up 19.1% from October.

Market players now looked ahead to a raft of Chinese economic data later in the week, including reports on inflation, industrial production and retail sales.

China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.