Oil Slumps as Traders Await Next Moves in China, Economic Data
Oil dipped as traders parsed economic data from the US and latest signals out of the trade war, including China’s efforts to support its tariff-hit economy.
West Texas Intermediate fell to trade near $62 a barrel as a key economic report showed that domestic manufacturing activity hit the lowest since May 2020. Treasury Secretary Scott Bessent told CNBC that “all aspects” of the US government are in contact with China but that the onus is on Beijing to begin de-escalating the tariff fight with the US.
In China — the top crude importer — officials vowed to provide more support for exporters affected by US President Donald Trump’s tariffs, while denying any trade talks with Washington. Authorities are fully confident of reaching the expansion target of about 5% in 2025, Zhao Chenxin, vice chairman of the National Development and Reform Commission, said in a briefing.
US crude is headed for a monthly slump of around 12%, the biggest since 2021, after touching a four-year low. Futures have been burdened by concerns that the US-led trade war will stifle economic activity and hurt energy demand. At the same time, the OPEC+ cartel has compounded bearish sentiment by ramping up idled production. The group will hold discussions on May 5 to weigh output plans for June.
The market’s next cues could come from a raft of major economic data this week, including US growth and payrolls figures. Investors will also get a chance to hear views on the global crude market outlook this week, with oil supermajors BP Plc, Shell Plc, Chevron Corp. and Exxon Mobil Corp. reporting earnings.
WTI fell by 1.13% trade at $62.31 a barrel at 10:47 a.m. in New York. Brent slid 0.897% to trade at $66.27 a barrel.
Source: Bloomberg
