Oil prices came under pressure after Chinese economic data demonstrated a faster-than-expected decline in exports and imports.
This data comes on top of an already weaker-than-expected recovery in China. The data directed traders’ concerns to oil demand levels once again as China sees declining oil imports.
The data affected the market’s positive performance as Chinese demand remains a critical factor for the market and could see traders monitoring new developments in the country.
George Pavel, General Manager at Capex.com Middle East said, “Overall, crude has been accumulating gains for more than a month. Prices have been recovering due to the expectations of tighter supply as Saudi Arabia and Russia extended their production cuts to include September.
“Both countries remained open to increasing the size of their production cuts if necessary to support the market.
“Concerns about demand from China, global economic growth and production levels could continue to move the market and create volatility and uncertainty.
“Demand issues could prove a challenge for producing countries as they maintain production cuts to prop up prices.
“Otherwise, rising tensions in the black sea could affect Russia’s ability to deliver part of its oil production to its remaining trade partners.
“Renewed issues on this supply route could add to the concerns around available volumes on the market and could contribute to support prices.”