WASHINGTON (dpa-AFX) - Oil prices fell on Monday amid concerns about the outlook for demand after weak economic data from China. Tariff hike threats from Donald Trump hurt as well. Concerns of supply disruptions and U.S. sanctions on Russia and Iran limited the downside in oil prices.
The U.S. is reportedly considering further sanctions on 'dark fleet' tankers and Chinese banks to curb Russia's oil revenue.
West Texas Intermediate Crude oil futures for January closed down $0.58 at $70.71 a barrel.
Brent crude futures settled at $73.91 a barrel, losing $0.58 or about 0.8%.
China's official data painted a mixed picture for growth in November as industrial production posted a faster expansion and house prices fell at slower pace, while retail sales growth softened highlighting the need for additional stimulus to retain sustainable growth.
Industrial production expanded 5.4% from the previous year, which was slightly faster than the 5.3% increase in October, data from the National Bureau of Statistics revealed. The rate came in line with expectations.
By contrast, retail sales growth weakened more-than-expected to 3% in November from 4.8% in October. Growth was seen at 4.6%.
During January to November, fixed asset investment showed an increase of 3.3% from the previous year. This was slightly weaker than the 3.4% expansion posted during January to October.
The Federal Reserve, which is scheduled to announce its monetary policy on Wednesday, is widely expected to cut interest rate by 25 basis points.
Investors are looking ahead to the updated policy statement and Fed Chair Jerome Powell's press conference for clues on future interest rates under the Trump administration.
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