Crude falls as China’s economy shows signs of faltering

13 May 2013 12:49  [Source: ICIS news]

LONDON (ICIS)--Crude oil futures fell by more than $1.00/bbl on Monday, as China’s industrial output growth increased below forecast levels while Iraq resumes oil flows via the Kirkuk-Ceyhan pipeline.

By 10:58 GMT, the front-month June ICE Brent contract touched an intra-day low at $102.67/bbl, a loss of $1.24/bbl compared with the settlement last Friday. The contract then edged higher to trade around $102.70/bbl.

At the same time, the front-month June NYMEX WTI contract was trading around $95.10/bbl, having touched an intra-day low at $94.86/bbl, a loss of $1.18/bbl compared with the previous settlement.

China’s industrial production in April grew by 9.30% compared with the same month last year. This was an increase from 8.90% growth in March, but marginally below forecasts of 9.50%.

Away from the Asia-Pacific, oil flows from Iraq via the Kirkuk-Ceyhan oil pipeline from the Iraqi city of Kirkuk to the Mediterranean port of Ceyhan resumed on Saturday. The pipeline was partially damaged last Monday after militants blew up part of it causing a cessation of oil flow.

The pipeline carries sour grade Kirkuk to many refiners based in the Mediterranean. Refineries in the region have complained of a sour crude deficit in recent weeks as Kirkuk loading has been intermittent for months due to sabotage.

By: Kawai Wong
+44 20 8652 3214

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly