* Brent, WTI slide after gains last week
* Chinese exports fall, rekindle worries about trade war
impact
* China's exports in Nov fall 1.1% y/y vs expectations of
increase
(Adds settlement prices)
By Jessica Resnick-Ault
NEW YORK, Dec 9 (Reuters) - Oil prices fell on Monday after
data showed Chinese exports declined for a fourth straight
month, sending jitters through a market already concerned about
damage to global demand by the trade war between Washington and
Beijing.
Brent futures LCOc1 settled down 14 cents, or 0.22%, at
$64.25 per barrel, after gaining about 3% last week on news that
OPEC and its allies would deepen output cuts.
West Texas Intermediate oil futures CLc1 were down 17
cents, or 0.24%, at $59.02 a barrel, having risen about 7% last
week on the prospects for lower production from OPEC+, which is
made up of the Organization of the Petroleum Exporting Countries
and associated producers including Russia.
Monday's sudden chill came after customs data released on
Sunday showed exports from China in November fell 1.1% from a
year earlier, confounding expectations for a 1% rise in a
Reuters poll.
"That China trade data is a factor, certainly," said John
Kilduff, a partner at Again Capital.
Washington and Beijing have been trying to agree on a trade
deal that will end tit-for-tat tariffs, but talks have dragged
on for months.
"We're coming up to a bit of a precipice, with the potential
for new tariffs to be slapped on Sunday, so this is going to be
an intense week," Kilduff said. Additional tariffs could weigh
on the demand outlook for crude, he added.
Beijing hopes an agreement with the United States can be
reached as soon as possible, China's assistant commerce
minister, Ren Hongbin, said on Monday. Monday's declines also went against signs on Friday that
China was easing its stance on resolving the trade dispute with
the United States, confirming it was waiving import tariffs for
some soybean and pork shipments.
The price drop also put an end to a strong run in previous
sessions fuelled by hopes for the OPEC+ production curb deal.
On Friday, OPEC+ agreed to deepen its output cuts from 1.2
million barrels per day (bpd) to 1.7 million bpd, representing
about 1.7% of global production.
"This decision crystallises an important shift in strategy
to managing short-term physical imbalances rather than trying to
correct perceived long-term imbalances through open-ended
commitments," Goldman Sachs said in a note. The bank revised its Brent spot price forecast to $63 per
barrel for 2020, up from a previous estimate of $60.
BofA Merrill Lynch said in a note that strong compliance
with the OPEC+ along with positive economic developments such as
a U.S.-China trade deal could push Brent to $70 a barrel before
the second quarter of 2020. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
CHART: Brent oil may retest resistance at $64.63 U.S. oil may retest resistance at $59.75 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>