• 2 hours UK Offers North Sea Oil Producers Tax Relief To Boost Investment
  • 4 hours Iraq Wants To Build Gas Pipeline To Kuwait In Blow To Shell
  • 6 hours Trader Trafigura Raises Share Of Oil Purchases From State Firms
  • 8 hours German Energy Group Uniper Rejects $9B Finnish Takeover Bid
  • 9 hours Total Could Lose Big If It Pulls Out Of South Pars Deal
  • 11 hours Dakota Watchdog Warns It Could Revoke Keystone XL Approval
  • 1 day Oil Prices Rise After API Reports Major Crude Draw
  • 1 day Citgo President And 5 VPs Arrested On Embezzlement Charges
  • 1 day Gazprom Speaks Out Against OPEC Production Cut Extension
  • 1 day Statoil Looks To Lighter Oil To Boost Profitability
  • 1 day Oil Billionaire Becomes Wind Energy’s Top Influencer
  • 1 day Transneft Warns Urals Oil Quality Reaching Critical Levels
  • 1 day Whitefish Energy Suspends Work In Puerto Rico
  • 1 day U.S. Authorities Arrest Two On Major Energy Corruption Scheme
  • 2 days Thanksgiving Gas Prices At 3-Year High
  • 2 days Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 2 days South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 2 days Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 2 days Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 2 days Iraq Steps In To Offset Falling Venezuela Oil Production
  • 2 days ConocoPhillips Sets Price Ceiling For New Projects
  • 5 days Shell Oil Trading Head Steps Down After 29 Years
  • 5 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 5 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 5 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 5 days Venezuela Officially In Default
  • 5 days Iran Prepares To Export LNG To Boost Trade Relations
  • 5 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 6 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 6 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 6 days Rosneft Announces Completion Of World’s Longest Well
  • 6 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 6 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 6 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 6 days Santos Admits It Rejected $7.2B Takeover Bid
  • 7 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 7 days Africa’s Richest Woman Fired From Sonangol
  • 7 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 7 days Russian Hackers Target British Energy Industry
  • 7 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
Thanksgiving Travelers Smash Records

Thanksgiving Travelers Smash Records

The U.S. is preparing to…

New Battery Design Could Crush Tesla

New Battery Design Could Crush Tesla

Elon Musk’s old rival, Henrik…

Oil Drops on China Demand

Oil Drops on China Demand

Crude oil futures declined on new data from China showing that exports dropped by more than expected, providing fresh evidence of a slowdown in the Chinese economy. For April delivery, NYMEX oil dropped by 1.2% to $101.32 per barrel. Brent crude also dropped by 0.9% to $107.97.

China released data showing that its exports declined by 18% in February from a year before. This is the largest drop off in six months. A slowdown in the Chinese economy would slow the growth of oil demand, sending prices down. The Chinese government reiterated its growth target of 7.5% for 2014. However, economic analysts are worried that provincial level debt, a real estate bubble that is beginning to cool, and an effort to rein in lending could all contribute to a “hard landing” for the Chinese economy. Such concerns weigh on the markets, and put downward pressure on commodity prices.

Yet a hard landing is not a given. The Chinese Lunar New Year holiday could have distorted February’s economic data. But taken together, January and February showed that exports declined 1.6%.

Related Article: China Moves Forward with New Nuclear Reactors

For investors, negative economic data from China seemed to outweigh the ongoing conflict in Ukraine. Crimea’s most recent attempts to break away from Ukraine and join Russia have heightened tension between Russia and the West over the future of Ukraine. The U.S. and some European countries have declared Crimea’s referendum on independence as unconstitutional.

These geopolitical tensions have affected oil prices. "With mixed industrial production data out of Europe added in, oil would probably be even lower were it not for events in the Crimea and Libya," Tradition Energy analyst Addison Armstrong wrote in a comment Monday morning, according to the Wall Street Journal. In Libya, the central government promised to destroy a North Korean-flagged oil tanker attempting to export oil from rebel controlled ports.

By Joao Peixe of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News