Oil prices extend losses as weak China data compounds U.S.-China trade deal doubts

Published 15/10/2019, 02:44
© Reuters.  Oil prices extend losses as weak China data compounds U.S.-China trade deal doubts
LCO
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* Brent futures down 0.5% in early trade, WTI off 0.4%

* China trade numbers underline global economy fears

By Seng Li Peng

SINGAPORE, Oct 15 (Reuters) - Oil prices dropped again on

Tuesday after falling heavily in the previous session, as weak

Chinese economic data for September added to lingering concerns

about the feasibility of the U.S.-China trade deal announced by

President Trump late last week.

Brent crude futures LCOc1 fell 30 cents, or 0.5%, to

$59.067 barrel by 0142 GMT, while U.S. West Texas Intermediate

(WTI) crude futures CLc1 was at $53.38 a barrel, down 21 cents

or 0.4%.

"China's exports and imports shrunk more than expected in

September, as ongoing tariffs and a slowdown in global trade

undercut demand," analysts at ANZ bank wrote in a research note.

Doubts over the agreement between Washington and Beijing,

designed to end a brutal trade war between the world's top two

economies, also kept sentiment weak, ANZ said. The U.S.-China

dispute has cast a shadow on global economic growth prospects,

and left questionmarks over future oil demand. A slide in China's exports picked up pace in September,

while imports contracted for a fifth straight month, pointing to

further weakness in the economy and underlining the need for

more stimulus as the U.S.-China trade war drags on. The impact was enough to outweigh any support that prices

might have received from geopolitical tensions surrounding the

Middle East.

On Monday President Trump imposed sanctions on Turkey

demanded the NATO ally stop a military incursion in northeast

Syria that is rapidly reshaping the battlefield of the world's

deadliest ongoing war. (Reporting Seng Li Peng

Editing by Kenneth Maxwell)

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