Consumption of the energy commodity in China is projected to decline in response to reports indicating reduced manufacturing expansion. The Asian nation trails only the U.S. as the globe's largest consumer of the energy commodity.
"The Chinese economy is not growing as fast as people had expected, so some of the stocks that would have been accumulated in the start of the year will probably be weighing on the market," commodities research head Nic Brown with Natixis Commodity Markets told the news source. "If you get something of a weakening in Chinese demand, which I think is entirely reasonable in the months ahead, that would take some of the pressure off the oil market."
At 8:33 a.m. on Tuesday, crude oil futures fell 0.29 percent, a 35 cent drop to $119.12 per barrel.
Dow Jones Newswires reports analysts were eyeing employment figures to be released later this week by the U.S., indicating the metric will demonstrate the health of the host of the globe's largest economy and biggest consumer of oil.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.