Oil slips below $77 on weak China data
Friday, 16 July 2010
SINGAPORE, July 15 (Commodity Online): World oil prices eased below $77 in Asian trade Thursday mainly on reports of weak Chinese economic growth.
Light sweet crude for August delivery was seen trading at $76.54 a barrel at 11.30 am Singapore time while Brent crude was at $ 76.41 a barrel in London.
Analysts said market will respond immediately to any reports coming from world's two top oil consumers, the US and China.
The black gold edged lower on reports of slowdown in Chinese economic growth in the second quarter and US Federal Reserve minutes renewed concerns about the recovery of the world economy.
Profit taking by traders from Wednesday's rally spurred by a better-than-expected fall in US crude stockpiles also hit oil, they added.
World's second-largest oil consumer, China's annual gross domestic product growth moderated to 10.3 per cent in the second quarter from 11.9 per cent in the first quarter, slightly below forecasts of 10.5 per cent growth.
Asian stocks virtually erased losses after the Chinese reports while the oil market participants also awaited US economic indicators, including industrial output, due later Thursday.
On Wednesday, crude settled at $77.04 after rising as high as $78.15. Crude hit a low of $76.38 before the bullish crude inventory data was released. Brent crude ended up 12 cents at $76.77.
Light sweet crude for August delivery was seen trading at $76.54 a barrel at 11.30 am Singapore time while Brent crude was at $ 76.41 a barrel in London.
Analysts said market will respond immediately to any reports coming from world's two top oil consumers, the US and China.
The black gold edged lower on reports of slowdown in Chinese economic growth in the second quarter and US Federal Reserve minutes renewed concerns about the recovery of the world economy.
Profit taking by traders from Wednesday's rally spurred by a better-than-expected fall in US crude stockpiles also hit oil, they added.
World's second-largest oil consumer, China's annual gross domestic product growth moderated to 10.3 per cent in the second quarter from 11.9 per cent in the first quarter, slightly below forecasts of 10.5 per cent growth.
Asian stocks virtually erased losses after the Chinese reports while the oil market participants also awaited US economic indicators, including industrial output, due later Thursday.
On Wednesday, crude settled at $77.04 after rising as high as $78.15. Crude hit a low of $76.38 before the bullish crude inventory data was released. Brent crude ended up 12 cents at $76.77.