Oil futures fell Monday, with the commodity under pressure after a round of weak China data underscored the potential damage to demand from the spread of the delta variant of the coronavirus that causes COVID-19. On Nymex Monday, September gasoline RBU21, -1.48% declined by 2.4% to $2.21 a gallon and September heating oil HOU21, -0.83% lost 1.8% to $2.04 a gallon.
July data out of China showed retail sales and industrial production disappointed, along with a January-to-July measure of fixed-asset investment. Meanwhile, the Taliban’s takeover of Kabul and the fall of the Afghanistan government were seen contributing to a weaker tone in financial markets but did little to add a risk premium to crude prices. Digging into the China figures, July crude-oil processing fell to 59.06 million metric tons, or 13.9 million barrels a day, the lowest since May 2020, said Carsten Fritsch, the analyst at Commerzbank. That was down 0.9% year over year, the first such negative reading since March 2020.
We love to hear new ideas from traders and want to know what you think!
If you like this topic and want to suggest future topics that you find helpful, let us know by clicking the ‘submit your feedback’ button below.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite.
Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.
