Futures for the West Texas Intermediate (WTI) dropped from its highest price in two weeks, following the government data which revealed the China’s industrial output slowed last month. China is the second largest oil consumer in the world after the US. Futures dropped as much as 0.8%, while factory production advanced 9.7% higher, according to reports from China’s National Bureau of Statistics. West Texas Intermediate (WTI) for February delivery dropped 0.75% lower at $93.61 a barrel on the New York Mercantile Exchange, after adding 41 cents to $94.37 on Jan 17, the first weekly increase in three weeks. Brent for March settlement declined 0.2% to $106.22 a barrel on the ICE futures Europe exchange. The European benchmark crude stood at a $12.64 premium to WTI for the same month.
According to a data released by the National Bureau of Statistics, China’s GDP expanded by 7.7% in the December quarter. Coming in higher than the 7.6% increase analysts forecasted, but slower than the 7.8% seen in the previous quarter. China’s Industrial production increased by 9.7% year-on-year in December, down from the 10% rise seen in the previous month. While Retail sales in December rose 13.6% higher year-on-year, compared to 13.7% recorded in November. Bullish bets on WTI were reduced by 17,455 options and futures to 229,722 in the week ended January 14, according to data from the Commodity Futures Trading Commission.
Last weekend, western powers including the US, China, Russia, France, Germany and the UK finalized a six-month deal with Iran, over the country’s nuclear program; which will be implemented from Monday. As part of the deal, the Persian nation will scale back its nuclear developments, while the US will ease economic sanctions. Visit www.hymarkets.com to find out more about our products and start trading today with only $50 using the latest trading technology today.
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