Oil drops after two-day surge as China clouds demand outlook
BNN Bloomberg
Oil fell after a two-day surge as Chinese trade data highlighted concerns about the nation's economic recovery and energy demand.
West Texas Intermediate declined toward US$72 a barrel after rallying almost 7 per cent in the prior two sessions. China's overall export growth slowed in April while imports plummeted, which also contributed to weaker wider markets on Tuesday. Demand for commodities fell last month, with overseas purchases of crude, iron ore and copper all dropping from the prior month.
Oil has retreated about 10 per cent this year as worries over the Federal Reserve's monetary-tightening campaign and the potential for a recession in the U.S. outweigh a resilient physical market. Traders who were holding out hope for China driving demand after its emergence from strict Covid policies will have to assess the implications of the latest data for prices.
