Oil slides from recent highs as markets await China GDP
Investing.com-- Oil prices fell in Asian trade on Monday, retreating further from recent highs as markets hunkered down ahead of key economic data from China, the world’s largest oil importer, which is expected to show a slowing economic recovery.
Crude prices also saw an extended session of profit taking in Asian trade, after they surged to near four-month highs last week. Weakness in the dollar and optimism over slowing U.S. inflation were the biggest drivers of the rally.
But this rally was somewhat offset on Friday, as data indicated that U.S. consumer sentiment and spending remained robust- a trend that could herald sticky inflation in the country and keep the Federal Reserve hawkish.
Losses spilled over into Monday, as traders also locked in profits ahead of pivotal data from China.
Brent oil futures fell 0.7% to $79.08 a barrel, losing the key $80 a barrel level hit last week, while West Texas Intermediate crude futures fell 1% to $74.58 a barrel by 21:50 ET (01:50 GMT). Both contracts rose sharply over the past three weeks, also benefiting from signs of tighter supply following oilfield and loading shutdowns in Nigeria and Libya.
But production from most of Libya’s major oil fields resumed over the weekend, offsetting this trend.
Markets were now awaiting second-quarter gross domestic product (GDP) data from China, which is expected to show that economic growth in the world’s largest oil importer slowed substantially from the first quarter.
A string of weak economic indicators from the country over the past three months have kept expectations largely subdued for a Chinese recovery this year.
Still, recent trade data showed that China’s oil imports remained largely robust, aided in part by refineries building
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