Oil prices drop on china demand concerns: AAP
11.06.2013,
11:18
Oil prices have dropped amid renewed concerns about China's appetite for crude oil after a batch of disappointing Chinese economic data.
YEREVAN, June 11. /ARKA/. Oil prices have dropped amid renewed concerns about China's appetite for crude oil after a batch of disappointing Chinese economic data.
New York's main contract, West Texas Intermediate for July, on Monday closed at $US95.77 a barrel, down 26 US cents from Friday.
In London trade, Brent North Sea crude for delivery in July fell 61 US cents to settle at $US103.95 a barrel.
China over the weekend published a slew of lukewarm economic indicators that sparked concerns about slower growth in the world's second-largest economy.
"Poor import data, retail sales that were not great, industrial production numbers that were a little bit lower than the market expected ... it is getting the market thinking about how China growth will be doing over the next few months," said Bart Melek of TD Securities.
Prices also were under pressure after Friday's strong gain in New York, said Robert Yawger of Mizuho Securities USA.
"We run into trouble every time it gets to the $97-98 level," Yawger said, noting that the market has failed against that level three times since April.
"People are getting out of their position because they have previously not managed to get through that."
The decline in prices was limited by tensions between Sudan and South Sudan, Yawger added.
On Saturday, Sudan President Omar al-Bashir shut the pipeline carrying South Sudanese crude for export, and on Sunday Sudan suspended nine security and economic pacts with South Sudan.
South Sudan produces about 350,000 barrels of oil per day but depends on Sudan's export infrastructure.
The two sides had not been able to agree on how much Juba would pay to use the pipeline.
In other oil market news, sit-in protests at Libyan oilfields have cost 250,000 barrels per day in lost production, Oil Minister Abdelbari al-Arussi said on Monday.
Demonstrations have been held at the terminals at Al-Harriga in Tobruk and Zueitina in the east, and at the Al-Fil oilfield in Ubari in the south, Arussi said.
The minister gave no details of the reasons for the protests, but said that "these protests are affecting Libya's economy, which depends on oil and gas resources". -0-
