Oil Struggles on Bearish U.S., China Data
August 25 2016 - 5:51AM
Dow Jones News
By Kevin Baxter and Jenny W. Hsu
LONDON--Oil prices were mixed Thursday as bearish data from both
the U.S. and China kept a lid on prices.
The October contract for Brent, the global benchmark crude, was
down 0.1% to $49.01 in morning trade in London, while its U.S.
counterpart West Texas Intermediate recovered some of Wednesday's
losses, up 0.2% at $46.84.
According to the Energy Information Administration, U.S. oil
imports were up by almost 450,000 barrels a day to 8.6 million b/d,
which coupled with weaker refinery activity led to a stock build of
2.6 million barrels.
"The highlight of this report was the bearish and unexpected
build in crude," said Michael Wittner, the chief commodities
analyst at Société Générale, in a note.
Meanwhile, in China net crude oil imports fell by just over 2%
month-on-month in July, falling to 7.29 million barrels a day from
7.45 million b/D in June according to the final figures released by
the country's National Bureau of Statistics.
Oil demand also fell year-over-year by 61,000 b/D to 10.62
million b/D. Reasons cited include serious flooding across the
country that hurt industrial output.
London-based Energy Aspects said in a note the slowdown in
imports was in line with expectations, after recent flooding hurt
economic activity and because of higher refinery maintenance
"We expect the slowdown in imports to persist in August, as
maintenance remains elevated and industrial activity is curtailed
ahead of the G-20 meeting in Hangzhou province, which will take
place on 4-5 September," the think tank said.
With the oil markets already jittery, some market participants
said they believe bearish data from the world's two largest oil
consuming countries could provide a serious headwind for prices
moving into next week.
Energy investors will also be paying attention to the J ackson
Hole symposium, which begins later Thursday and is being attended
by Federal Reserve Chairwoman Janet Yellen.
"The market hopes [she] would offer clarity on Federal Reserve
monetary policy stance," said Barnabas Gan, an economist at
OCBC.
Nymex reformulated gasoline blendstock for September--the
benchmark gasoline contract--fell 98 points to $1.4998 a gallon,
while September diesel traded at $1.4942, 21 points lower.
ICE gasoil for September changed hands at $434.50 a metric ton,
up $2.50 from Wednesday's settlement.
Write to Kevin Baxter at Kevin.Baxter@wsj.com and Jenny W. Hsu
at jenny.hsu@wsj.com
(END) Dow Jones Newswires
August 25, 2016 05:36 ET (09:36 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.