How Chinese Economic Data Impacts Brent Crude Prices
Image courtesy: Marketpulse by Oanda.
London: 9 August (TraderMade): China, the second largest economy, released economic data for foreign reserves and trade balance on Monday and Tuesday. By the end of July 2023, Chinese foreign reserves have grown to US $ 3.204 trillion.
The US Dollar decreased by 1% last month against other major currencies, and the Chinese Yuan's rise by 1.5% is another concern.
Brent Crude and other oil prices dipped on 9 August. China has been among the top importers of crude oil. Chinese trade and inflation data and tightened oil supply due to cuts by Saudi Arabia and Russia are causing slower demand from China.
By the second week of August, the Chinese data weighs on oil prices. Brent Crude price (per barrel) rose on 9 August from US $ 85.01 to US $ 85.36.
At 6:15 AM GMT, Brent Crude Futures traded at US $85.96, lower by 0.2% or 21 cents.
The central banks are at or close to closing their tightening cycles. Similarly, Saudi Arabia and Russia are reducing the crude oil supply. Moreover, OPEC+ countries have reduced their group supply by 2 million barrels a day since October 2022.
From March to June 2023, the Brent Crude price was hovering between US $70- US $72 due to sufficient support. But after that phase, the Brent Crude price is rallying strongly. Financial experts speculate that the rally might be in its concluding stage.
