Underwhelming export data released by the globe's second largest consumer prompted Brent and West Texas Intermediate crude oil futures to lose value on Monday, marking the first trading session of losses on three days for the energy commodity, according to Bloomberg.
International exports from China fell by more than 18 percent last month as compared with the same period last year, according to the General Administration of Customs. That represents the sharpest losses since August 2009.
"Today's stats have undermined the prices of commodities dependent on Chinese demand," senior broker Christopher Bellew with Jefferies Bache Ltd. in London told the news source on Monday. "Still, the statistics that come from emerging markets tend to be a bit bumpy, with quite big swings, and the picture is still for higher growth than in mature economies."
At 9:38 a.m. on Monday, WTI crude oil futures fell 1.54 percent, a $1.58 loss to $101 per barrel. At 9:39 a.m., Brent crude oil futures slumped 1.07 percent, a $1.17 dip to $107.83 per barrel.
The Wall Street Journal reports the Chinese losses represent a sizable concern about prospects for demand of the energy commodity.
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.