Oil Prices Ease Amid Weak Chinese Economic Data

PUKMEDIA

Oil prices.

Oil prices declined modestly on Monday, 9 June 2025, following the release of weaker-than-expected economic data from China. However, prices retained the bulk of last week's gains as markets turned their attention to forthcoming U.S.-China trade discussions scheduled to take place in London later today. Investors are hopeful that progress in negotiations may improve the global economic outlook and support energy demand.

According to Reuters, Brent crude futures fell by 18 cents, or 0.27%, to $66.29 per barrel as of 0644 GMT. Meanwhile, U.S. West Texas Intermediate (WTI) crude slipped 15 cents, or 0.23%, to $64.43.

The report noted that China's export growth slowed to a three-month low in May, largely due to the impact of U.S. tariffs on outbound shipments. Simultaneously, factory-gate deflation deepened to its most severe level in two years, intensifying pressure on the world's second-largest economy. Additionally, data indicated that China’s crude oil imports fell in May to the lowest daily average in four months, as both state-owned and independent refiners conducted extensive scheduled maintenance.

“This is unfortunate timing for crude, which had been testing the upper boundary of its recent range and nearing a potential technical breakout above $65,” Reuters quoted IG market analyst Tony Sycamore as saying, in reference to WTI prices.

“That said, I expect the market reaction to be more muted than usual, given the anticipation surrounding today’s U.S.-China trade talks.”

Last week, Brent rose by 4%, while WTI climbed by 6.2%—marking the first weekly gains for both benchmarks in three weeks—as optimism over a potential U.S.-China trade agreement buoyed investor sentiment.



PUKMEDIA