Investing.com - Crude oil futures added to losses on Monday, falling to the lowest levels of the session after U.S. retail sales missed expectations in June, fuelling fears that the economic recovery is losing momentum.
On the New York Mercantile Exchange, light sweet crude futures for delivery in September traded at USD104.70 a barrel during U.S. morning trade, down 0.8% on the day.
New York-traded oil prices fell by as much as 1.2% earlier in the day to hit a session low of USD104.30 a barrel, the weakest level since July 12.
The Commerce Department said U.S. retail sales rose 0.4% in June, slowing from a 0.5% increase in May and undershooting expectations for a 0.8% increase.
Core retail sales, which exclude automobile sales, were flat last month, compared to expectations for a 0.4% increase.
Rising retail sales over time correlate with stronger economic growth, while weaker sales signal a declining economy. Consumer spending accounts for as much as 70% of U.S. economic growth.
Also Monday, official data showed that China’s economy expanded 7.5% in the second quarter from a year earlier, in line with market expectations and slowing from a 7.7% increase in the preceding quarter.
A separate report showed that industrial production in China rose 8.9% in June, below expectations for a 9.1% increase and following a 9.2% gain the previous month.
China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.
Oil prices rallied 2.3% last week after Federal Reserve Chairman Ben Bernanke said the central bank will continue to maintain accommodative monetary policy for the foreseeable future.
On Thursday, New York-traded oil prices rose to USD107.44 a barrel, the strongest level since March 27, 2012.
Bernanke is due to testify to Congress on Wednesday and Thursday.
The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for September delivery shed 0.5% to trade at USD107.40 a barrel, with the spread between the Brent and crude contracts standing at USD2.70 a barrel.
The gap between the contracts narrowed to the smallest level since November 2010 last week, amid an improving production outlook in the North Sea and indications of declining stockpiles at Cushing, Oklahoma, the delivery point for Nymex oil futures.
On the New York Mercantile Exchange, light sweet crude futures for delivery in September traded at USD104.70 a barrel during U.S. morning trade, down 0.8% on the day.
New York-traded oil prices fell by as much as 1.2% earlier in the day to hit a session low of USD104.30 a barrel, the weakest level since July 12.
The Commerce Department said U.S. retail sales rose 0.4% in June, slowing from a 0.5% increase in May and undershooting expectations for a 0.8% increase.
Core retail sales, which exclude automobile sales, were flat last month, compared to expectations for a 0.4% increase.
Rising retail sales over time correlate with stronger economic growth, while weaker sales signal a declining economy. Consumer spending accounts for as much as 70% of U.S. economic growth.
Also Monday, official data showed that China’s economy expanded 7.5% in the second quarter from a year earlier, in line with market expectations and slowing from a 7.7% increase in the preceding quarter.
A separate report showed that industrial production in China rose 8.9% in June, below expectations for a 9.1% increase and following a 9.2% gain the previous month.
China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.
Oil prices rallied 2.3% last week after Federal Reserve Chairman Ben Bernanke said the central bank will continue to maintain accommodative monetary policy for the foreseeable future.
On Thursday, New York-traded oil prices rose to USD107.44 a barrel, the strongest level since March 27, 2012.
Bernanke is due to testify to Congress on Wednesday and Thursday.
The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for September delivery shed 0.5% to trade at USD107.40 a barrel, with the spread between the Brent and crude contracts standing at USD2.70 a barrel.
The gap between the contracts narrowed to the smallest level since November 2010 last week, amid an improving production outlook in the North Sea and indications of declining stockpiles at Cushing, Oklahoma, the delivery point for Nymex oil futures.