Oil prices fell on Tuesday to extend steep losses from the previous session as weak trade data from China raised concerns about the outlook for energy demand.
Benchmark Brent crude fell as much as 1.7 percent to $58.36 a barrel, while
U.S. West Texas Intermediate (WTI) crude futures were down 1.8 percent at
China’s exports and imports both contracted further in September, official data showed on Monday amid U.S. tariff hikes and sluggish domestic demand.
The National Bureau of Statistics (NBS) reported today that China’s factory gate prices declined at the fastest pace in more than three years in September due to slowing output growth and falling raw material prices.
In trade news, the U.S. and China reached a phase one deal late on Friday, but scant details about the deal cast doubts over the durability of the partial preliminary deal.
The real sticking points of technology transfer and intellectual property theft do not find any significant mention in the proposed deal.
According to a report in Bloomberg News, China may send a delegation led by Vice Premier Liu He to finalize a written deal that could be signed at the Asia-Pacific Economic Cooperation summit next month in Chile.
Also, China reportedly wants a planned tariff hike in December to be scrapped in addition to the hike scheduled for this week.
The material has been provided by InstaForex Company – www.instaforex.com
Source:: Oil Prices Fall For Second Day