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Published on : Sep 08, 2015

Oil prices on Tuesday went their own way after US prices dropped on worries that the Chinese growth rate was slowing down and with the global benchmark trading at a higher pace after a sharp decline on Monday. 

The market in the United States remained closed on Monday on account of the Labor Day holiday. 

Worse than anticipated trade data emerging from China on Tuesday piled onto worries of the slowdown in the second largest oil consumer in the world. Prices of oil plunged to over six year lows in the month of August after a slip in the stock market in China and ongoing concerns about over supply of crude. 

Chinese customs data revealed that the crude oil imports in the country last month dropped 13 per cent over the month and exports declined a whopping 33 per cent, highlighting the slowdown in the country. 

Sucden Financial Research analyst Myrto Sokou said that bearish data on the Chinese market confirmed everyone’s latest fears on the consistent weakening of the Chinese economy. 

The US oil benchmark dropped 2.9 per cent or US$ 1.33 to settle at US$ 44.72 per barrel on the New York Mercantile Exchange. 

At the same time, vigorous exports data in Germany offered some aid for the international benchmark Brent, according to Mrs Myrto Sokou. Exports from the largest economy in Europe went up 2.4 per cent in the month of July, with imports also registering a rise. 

Phillip Futures analyst Daniel Ang said that in the current situation of oversupply, even a slight hint of improvement in demand will be a welcome sign. 

The global benchmark Brent went up 1.1 per cent or 50 cents to settle at US$ 48.13 per barrel on ICE Futures Europe. Brent prices, however, dropped 4 per cent on Monday.