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Oil Snaps 4-day Winning Streak, Ends Notably Lower

Oil Snaps 4-day Winning Streak, Ends Notably Lower

Crude oil prices retreated on Monday, snapping a four-day winning streak, as worries about energy demand outlook due to weak Chinese industrial data outweighed positive news on U.S.-China trade front.

Speculation that OPEC and its allies would consider deeper production cuts when they meet in December limited oil’s slide.

Russia’s energy ministry said on Friday it is continuing close cooperation with Saudi Arabia, OPEC and non-OPEC oil producers to enhance market stability and predictability.

West Texas Intermediate Crude oil futures for December ended down $0.85, or about 1.5%, at $55.81 a barrel.

On Friday, WTI crude oil futures for December ended up $0.43 at $56.66 a barrel.

Crude oil futures had gained about 5% last week.

Data released by the National Bureau of Statistics over the weekend showed China’s industrial profits declined at a faster pace in September as producer prices continued to fall.

Industrial profits decreased 5.3% year-on-year, after easing 2% in August, the data showed.

During January to September, profits earned by industrial firms declined 2.1% compared to a 1.7% drop in January to August period.

Profits of state owned enterprises fell 9.6% on year and that of private enterprises increased 5.4%.

In trade news, the Office of the U.S. Trade Representative said the U.S. and China have “made headway on specific issues and the two sides are close to finalizing some sections of the agreement.”

On Saturday, China’s Commerce Ministry said both sides are “close to finalizing” some parts of a trade agreement after high-level telephone discussions on Friday.

U.S. President Donald Trump said he hopes to sign the deal with China’s President Xi Jinping next month at a summit in Chile.

The material has been provided by InstaForex Company – www.instaforex.com