WTI Crude Oil Prices Trading Lower, Chinese Data Not Helping

WTI crude oil prices continued their fall down and closed at $63.35 per barrel, down 0.2% for the day on Monday.


WTI crude oil prices continued their fall down and closed at $63.35 per barrel, down 0.2% for the day on Monday. Even though Trump announced implementation of full sanctions on Iranian oil starting from May 1, oil’s bullish run failed over expectations that US would pressure OPEC into increasing production output.

To make matters worse for oil prices, China posted weaker than expected factory activity and PMI unexpectedly earlier today. Chinese factory output rose for a second consecutive month in April, but at a slower pace than anticipated. Meanwhile, the official PMI figure for April fell to 50.1, from 50.5 in March.

A fall in manufacturing and export activity in China reduces the demand for oil from one of the world’s biggest economies, thereby putting additional pressure on crude oil prices. At the time of writing, WTI prices are trading at around $63.41 per barrel.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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