TOKYO, Dec 9 (Reuters) - Oil prices fell on Monday after
data showing China's overall exports of goods and services
shrank for a fourth straight month, sending shivers through a
market already concerned about damage being down to global
demand by the Sino-U.S. trade war.
Brent futures LCOc1 were down 33 cents, or 0.5%, at $64.06
per barrel by 0055 GMT, after gaining about 3% last week,
boosted by news that OPEC and allies would deepen output cuts.
West Texas Intermediate oil futures CLc1 were down 37
cents, or 0.6% to $58.85 a barrel, having risen about 7% last
week on prospects for lower production from 'OPEC+', the
Organization of the Petroleum Exporting Countries (OPEC) and
associated producers including Russia.
Monday's sudden chill came after customs data released on
Sunday showed exports from the world's second-biggest economy in
November fell 1.1% from a year earlier - a sharp reversal from
expectations for a 1% increase in a Reuters poll of analysts.
The weak start to the week came despite data showing China's
crude imports jumped a record, revealing just how deep jitters
are embedded in the market over the trade U.S.-China trade row
that has stymied global growth and oil demand.
The sagging export data is "a casualty again of the
protracted trade war," said Stephen Innes chief Asia market
strategist at AxiTrader.
Washington and Beijing have been trying to agree a trade
deal that will end tit-for-tat tariffs, but talks have dragged
on for months as they wrangle over key details.
Monday's price drops put an end to a strong run in previous
sessions fuelled by hopes for the OPEC+ production curb deal.
On Friday, those producers agreed to deepen their output
cuts from 1.2 million barrels per day (bpd) to 1.7 million bpd,
representing about 1.7% of global production. Still, U.S. production has surged since the OPEC+ cuts were
first introduced in 2017 in an attempt to drain a supply glut
that had long weighed on prices. Output there has risen even as
the drill count has fallen, reflecting more efficient well
extraction.
Energy services firm Baker Hughes said in its closely
watched weekly drilling report on Friday that the U.S. drill
count fell in the week to Dec. 6 - a seventh week of decline.
Drilling companies cut five oil rigs, leaving a total of
661, the lowest since April 2017. RIG/U