This Monday, China's overall exports of goods and services including its oil products fell as global demand rocked the industry. A the report claimed that the oil market has already caused great concern among investors, since the US-China trade war has caused a decline in the global demand for oil products.
According to Business Live, one of the Chinese oil market players, Brent, experienced a decline in oil prices. The report indicated that its oil price values were down a cent or 0.3 percent. Now, the value is only at $64.18 per barrel by 4.20 SA time. Last week, the oil price was up by three percent after news that Open and its allies would impose an extension on its output cuts.
Similarly, the report also indicated that West Texas Intermediate oil futures also experienced a decline. Its values were down by 28c amounting to a 0.47 decline. Its oil price is now at $58.92 a barrel. However, last week, it garnered a seven percent increased due to OPEC's announcement of lessening its oil production. Associated producers in Russia for the oil product experienced the same change.
The report indicated that the values changed this Monday due to a data report released by the Chinese customs sector. It was revealed that oil exports from China fell by 1.1 percent last month, the same changes that it experienced during the third quarter of 2018. The result was contrary to the expectations for the oil products in the industry since experts initially forecasted that oil prices were to increase by one percent this year.
This Monday, China's crude imports also changed drastically. The report indicated that it experienced a weak start which also showed that the oil market is significantly affected by the US-China trade war. It was also mentioned that the stymied oil product growth and oil demand correlate directly with tariff rates, the issue that two of the strongest global oil economies are resolving at the moment.
According to CNBC News, OPEC initially announced last Friday that China was easing its stance in the US-China trade war. It was also confirmed last Friday that in the event the import tariff rates of soybean and pork shipments would yield a positive effect on the oil products industry.
It was also initially revealed last Friday that producers from these industries would yield an output cut from 1.2 million barrels per day to 1.7 million, representing about 1.7 percent of the oil industry's global production.