Oil prices continued to fall for the second straight session on Tuesday, after incurring heavy losses in the previous session, amid weak data on the Chinese economy which raised concerns about the growth of energy demand at the world's largest importer of crude oil.
Brent crude futures slumped a 1.53 percent at $58.44 a barrel, but managed to recover some of its losses to trade at $53.10 a barrel
West Texas crude was 1.66 percent down at $52.70 a barrel, after the prices opened at $53.54 a barrel.
The weak economic data released from China since the beginning of the week China have showed that factory gate prices fell at the fastest pace in three years in the past month.
Trade data also signaled contraction in both exports and imports by 3.2 percent and 8.5 percent respectively, coming below analysts’ projections.
The slowdown in China's economy is raising investor concerns about the future of global economic growth and levels of crude demand.
The Chinese government will release its third-quarter GDP at the end of this week, which may indicate a slowdown in the pace of growth to 6.1 percent (year-on-year), compared to 6.2 percent expansion in the second quarter.
On the other hand, press reports yesterday revealed China's willingness to hold trade talks this month to construct details of the first phase of the trade deal with the United States.
Despite talk of progress toward an agreement between the two sides, The U.S.-China trade dispute continues to affect the global economy, while many questions about the future of oil demand remain unanswered.
U.S. Treasury Secretary Steven Mnuchin expressed his optimism that the United States and China have a phase one practical agreement that could help address some key elements of the trade dispute between the two countries.
Later in the day, the
American Petroleum Institute is scheduled to announce preliminary U.S.
inventories data for the past week later today, ahead of Wednesday’s government