Oil prices give up 2%, dollar slips amid Chinese developments

Economies.com
2022-05-16 06:40AM UTC

Oil futures tilted lower 2% in Asian trade with US crude off March 28 highs, while Brent slipped from May 9 highs, even as the dollar index gave up ground as well.

 

As of 06:29 GMT, US crude futures due in June fell 1.76% to $109.06 a barrel, while Brent July futures tumbled 2.55% to $109.77 a barrel, as the dollar index slipped 0.02% to 104.57. 

 

China's retail sales fell 11.% in April, while industrial production tumbled 2.9% m/m, with the unemployment rate up to 6.1% from 5.8%

 

The Chinese government admitted that under pressure from the latest Covid 19 wave, economic performance has suffered in the short term. 

 

Latest World Health Organization ddata showed Covid 19 infections are up to 517.65 million, with the death toll at 6.261 million.

 

From the US, the Empire State Manufacturing index is expected down to 15.3 from 24.6.

 

Goldman Sachs analysts have cut estimates for US GDP growth this year to 2.4%, and next year to 1.6% due to the ongoing inflationary pressures. 

 

Analysts are also taking into account the rapid pace of rate hikes by the Federal Reserve, expected throughout the year. 

 

Fed Chair Jerome Powell said last week that cutting down inflation to the targets of 2% will case some pain to the economy, but it's a necessary step, to keep hiking rates throughout the next two years to stabilize the economy. 

 

Baker Hughes data last week showed US oil rigs rose by 6 rigs to 563 rigs, the highest since March 2020, and it's the eighth weekly increase in a row.

 

US output fell for the first time since late January, by 100 thousand bpd to 11.8 million bpd away from May 2020 highs, while still down 1.3 million bpd, or 11% from a record high at 13.1 million bpd, reached in March 2020.

Commodities News

Gold News

Commodities

Gold hits fresh record highs, marking a 6% quarterly profit
2024-03-28 20:28PM UTC
Gold Prices Gold prices rose on Thursday to fresh record highs while the dollar eked out gains ...
Copper News

Commodities

Copper edges up while facing pressures from Chinese demand concerns
2024-03-28 16:45PM UTC
Copper prices rose modestly on Thursday while the dollar gained ground, with ongoing concerns about ...
Oil News

Commodities

Oil prices extend gains after strong US growth data
2024-03-28 13:03PM UTC
Global Oil Prices Global oil prices extended their gains in American trade on Thursday and hit ...

Commodities Technical Analysis

Technical Analysis

Commodities

Wheat price returns to the bullish correction – Forecast today - 29-03-2024
2024-03-29 01:50AM UTC
Wheat Price Analysis Expected Scenario: Continuing Bullish Momentum Wheat price rallied ...
Technical Analysis

Commodities

Sugar price completes the positive pattern – Forecast today - 29-03-2024
2024-03-29 01:49AM UTC
Sugar Price Analysis Expected Scenario: Continuing Bullish Trend Sugar price managed to breach ...
Technical Analysis

Commodities

Soybean price keeps the positive stability – Forecast today - 29-03-2024
2024-03-29 01:49AM UTC
Soybean Price Analysis Expected Scenario: Continuing Bullish Trend Soybean price attempted to ...