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Oil prices fall on dismal Chinese trade data

Oil prices fall on dismal Chinese trade data

Oil prices fell on Monday’s trading, driven by negative Chinese data highlighting the fallout from the trade war between the world's two largest economies.

As of 11:06 GMT, Brent crude futures slumped 0.79 percent at $63.88 a barrel after hitting a high of $63.91.

The retreat today came after this gains, of about 3 percent, locked last week thanks to news of increased production cuts by OPEC and its allies.

Crude oil WTI futures was down by 0.91 percent at $58.66 a barrel, after a 7 percent increase last week.

The data released on Sunday showed that China's exports tumbled for the fourth consecutive month in a row that fell in violation of analysts' expectations last month, while imports recorded their first rise in seven months.

Data released by the Chinese Customs Authority on Sunday revealed that the country's exports fell by 1.1 percent in November compared to the same period last year and compared with a decline of 0.9 percent the previous month.

Analysts estimated that exports from the world's second largest economy would rise by about 1 percent last month.

As for China's imports, it rose by about 0.3 percent last month year, the first rise since last April, where imports were estimated to decline by about 1.8 percent last month.

According to the data, China's trade surplus was $38.73 billion in November, compared with the previous month's $42.81 billion surplus.

The trade surplus of the world's second largest economy came last month, reflecting expectations of a rise to $46.30 billion.

Last week, OPEC and its non-member allies decided to deepen oil production cuts starting next year for three months, with the decision to be reviewed in early March, where OPEC is scheduled to announce its monthly report later this week.

The weekly report of the U.S. Energy Information Administration (EIA) also showed U.S. oil production stabilized at a record high.

The dollar index, which measures the performance of major six currencies against the U.S dollar, slipped by 0.1 percent at 97.60.

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