Oil Prices Fall in Asia After China GDP Data

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Crude-oil prices fell in Asian trade Monday, as China’s third quarter gross domestic product data underscored worries about slowing consumption.

The world’s second-largest economy grew by 6.9%, the slowest pace since 2009.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in November traded at $47.04 a barrel at 0457 GMT, down 22 cents in the Globex electronic session. December Brent crude on London’s ICE Futures exchange fell 14 cents to $50.24 a barrel.

Besides concerns about China’s GDP data, a supply overhang has also put downward pressure on crude oil.

Members of the Organization of the Petroleum Exporting Countries have continued to pump oil into markets, even though oil supplies are at near-record levels.

Despite decelerating U.S. oil production, oil inventories continue to rise because of routine seasonal maintenance shutdowns by oil refiners.

“I am expecting to see U.S. crude oil inventories rise as refinery capacity is low at the moment,” said Daniel Ang, an analyst at Phillip Futures.

He said manufacturing activity data out of China, the U.S. and eurozone later in the week would also determine the near-term direction of crude oil.

Although China’s GDP data weighed on the immediate market sentiment, there are signs of a slight upturn in the country’s property sector as well as a better outlook for the auto sector.

At 0460 GMT, oil product futures were up.

Nymex reformulated gasoline blendstock for November–the benchmark gasoline contract–rose to 1.3287 cents a gallon from 1.3280 cents.

ICE gasoil for December changed hands at $464.50 a metric ton, up $2.50 from Friday’s settlement.

 

 

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