Oil down in Asia after weak China trade data
Singapore – Crude was lower in Asia Friday as weak Chinese trade data provided a further indication that economic growth in the world’s largest energy consumer is slowing, analysts said.
New York’s main contract, light sweet crude for delivery in September, retreated 36 cents to $93.00 a barrel while Brent North Sea crude for September delivery fell 36 cents to $112.86.
China’s General Administration of Customs said exports grew just one percent in July year-on-year to $176.9 billion, while imports rose 4.7 percent to $151.8 billion, cutting the trade surplus to $25.1 billion from $31.7 billion in June.
The data follow results on Thursday showing retail sales, industrial output and inflation eased in July, showing that the export-driven economy was feeling the effects of Europe’s debt crisis was lowering demand in the key market.
“The economic data out of China certainly has been bearish… it’s not good news and has prompted equities and oil futures to move down,” said Victor Shum, senior principal of Purvin and Gertz energy consultants in Singapore.
