Oil rebounds despite U.S., China data points
Published Jul 15, 2013 09:01PM ET
On the New York Mercantile Exchange, light, sweet crude futures for August delivery rose 0.26% to USD106.20 per barrel in Asian trading Tuesday after settling down 0.02% at USD105.53 a barrel on Monday, off from a session high of USD105.92 and up from an earlier session low of USD104.30.
That was a modest loss considering the avalanche of key data points out from the U.S. and China Monday. In U.S. economic news out Monday, U.S. retail sales rose 0.4% last month, well below the 0.8% increase economists expected. Excluding sales of automobiles, gasoline and building materials, retail sales rose just 0.1% in June following a 0.2% increase in May.
The New York Federal Reserve’s Empire State Manufacturing Survey rose to 9.46 fro, 7.84 in June. Economists expected a reading of 5.
Weakness in retail sales, a pivotal part of the U.S. economy, lead to some paring of 2013 GDP growth forecasts for the U.S. by major banks. Goldman Sachs cut its second-quarter GDP growth estimate to 1% from 1.3% while Barclays lowered its estimate to 0.5% from 0.6%.
Elsewhere, China's gross domestic product expanded 7.5% in the second quarter from a year earlier, following growth of 7.7% in the first quarter. The second-quarter reading matched analysts’ estimates. The U.S. and China are the world’s two biggest economies and the two largest oil consumers.
Press reports said the Organization of Petroleum Exporting Countries could lower output when it meets in December due to increased supply from North America. That would be the first cut from the 12-member cartel that accounts for 40% of global oil output in five years.
Meanwhile, Brent futures for September delivery inched up 0.05% to USD108.12 per barrel on the ICE Futures Exchange.
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Written By: Investing.com
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