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China's exports fell by the most in two years in December while
imports contracted, official figures showed, pointing to further
weakness in what is also the world's second-largest economy.
Brent crude, the international benchmark, fell 50 cents to
$59.98 a barrel by 0932 GMT, trading as low as $59.37 intraday.
U.S. crude slipped 41 cents to $51.18.
"Both imports and exports disappointed expectations and are set
to revive fears about a global growth slowdown," said Norbert
Ruecker, head of macro and commodity research at Swiss bank
Julius Baer.
Crude gave up an earlier gain following the release on Monday of
the Chinese figures, the latest to point to an economic slowdown
since the second half of 2018. Asian stock markets also slipped
and European equities fell in early trade.
"Oil prices are getting weighted down by the prospects of weaker
economic growth in China," Stephen Innes of futures brokerage
Oanda said in a report.
"This data drives home just how negative of an impact trade war
is having on the Chinese and perhaps global economy."
Despite concern about the outlook, there is little sign that
Chinese oil demand has weakened yet. China's crude imports in
December surged nearly 30 percent from a year earlier, Reuters
calculations of customs data showed.
Oil is drawing support from supply cuts led by the Organization
of the Petroleum Exporting Countries and non-OPEC allies,
including Russia.
The group of producers, known as OPEC+, agreed in December to
cut oil output by 1.2 million barrels per day starting in
January to prevent a supply glut and boost prices.
With the rise in Brent from a dip below $50 in December, OPEC
officials appear more confident that prices will be supported by
output declines in January as producers implement the deal.
Saudi Energy Minister Khalid al-Falih said on Sunday the oil
market was "on the right track" and there was no need for an
extraordinary OPEC meeting before its next planned gathering in
April.
(Additional reporting by Henning Gloystein in Singapore; Editing
by Dale Hudson)
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