Asian markets see a fall in Oil prices, Copper down to 8-week low on China data

Owing to weak consumer demand from the US and high May crude production in China, oil prices dipped.

Jun 18, 2024 - 15:00
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Asian markets see a fall in Oil prices, Copper down to 8-week low on China data

Asian market experienced a decline in oil prices on Monday due to a recent survey indicating reduced US consumer demand and increased crude production in China, the largest importer of crude oil globally.

Copper also experienced a decrease lasting four weeks following the release of Chinese economic data that emphasized ongoing weaknesses in the largest market for the metal.

Copper dropped by up to 1.1 per cent to $9,631 per ton on the London Metal Exchange, on track for its lowest ending in two months.

On Monday, data from the world's second largest economy raised worries about a weak demand recovery. Although retail sales performed well in May, there was a slowdown in industrial output and fixed-asset investment, and the housing market continued to decline.

Copper prices have seen a drop because of rise in global inventory levels and indications of China's economic slump.Metals saw a fall in prices last week due to the lowering expectations for rate hikes by the Fed. Prices were down by 1.1 per cent, trading at $9,639.50 per ton.

Global benchmark Brent crude futures for August delivery were down 40 cents, or 0.5 per cent, at $82.22 per barrel. Also, the more active August delivery WTI contract declined by 0.5 percent, reaching $77.7 per barrel.

A recent survey shpwed that American consumer sentiment dropped to its lowest level in seven months in June, as households expressed concerns about their personal financial conditions and rising inflation.

Overall both the benchmark contracts still gained nearly 4 per cent last week, the highest weekly rise in percentage terms since April, on signs of stronger fuel demand from OPEC+ and the IEA.

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