Investing.com – Oil prices rebounded on Tuesday in Asia after falling more than 2% in the previous session amid weak Chinese trade data.
New York-traded rose $0.65, or 1.3%, at $51.16 per barrel.
London-traded , the global oil benchmark, gained $0.7, or 1.2%, to $59.72 by 11:33 PM ET (04:33 GMT)
The impact of OPEC+ cuts and Iran sanctions were cited as providing continuing support for oil prices.
The Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC allies, including Russia, agreed in late 2018 to cut supply to rein in a global glut.
Meanwhile, the U.S. last November re-imposed sanctions against Iran’s oil exports.
On Monday, oil prices settled down more than 2% lower after data showed China’s December exports fell by 4.4% from last year, the biggest drop in 2 years. Chinese imports also plunged by 7.6%, the biggest drop since 2016.
“On the crude oil front, the news from China took this market out of the green as well,” Dan Flynn, an analyst at The Price Futures Group in Chicago wrote in his Monday note, as WTI and Brent became correlated with the stock market again after a near uninterrupted three-week rally.
There have been some worries that China’s 2019 growth could be one of the lowest since 1990. Being the world’s biggest oil consumer, any significant slide in China’s economy will have major ramifications for energy demand.
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Source: Investing.com
