Crude oil prices were down during Monday’s early trading as the U.S.-China trade dispute continues to impair Beijing’s exports while putting downward pressure on global oil demand.
China’s exports in November fell 1.1% from the same month a year ago, marking a fourth consecutive monthly decline.
Chinese exports to the U.S. were also down 23% in November — the highest monthly decline since February this year and the twelfth monthly decrease in succession.
Weak data suggests the ongoing, unresolved U.S.-China trade differences continues to negatively impact the world’s second largest economy, global oil demand and crude prices.
The White House economic adviser Larry Kudlow said Friday that the U.S. could still impose a new round of tariffs on $156 billion worth of Chinese imports after the Dec. 15 deadline.
The two countries have to date failed to resolve key issues on their trade differences, such as intellectual property rights and technology transfer.
On the supply side, OPEC and allies agreed on Friday to collectively lower their output by an additional 500,000 barrels per day (bpd) for the first three months of 2020, while Saudi Arabia said it would voluntarily cut its production by another 400,000 bpd.
This brings the total output cut of the group, known as OPEC+, to 2.1 million bpd, from the current 1.2 million bpd.
Although the new deal pushed the price of Brent crude up by 1.6% and West Texas Intermediate (WTI) by 1.3% on Friday, crude oil prices failed to rally by the decision on Monday.
International benchmark Brent crude was trading at $64.22 per barrel at 0700 GMT on Monday for a 0.26% loss after closing Friday at $64.39 a barrel.
American benchmark WTI was at $58.94 a barrel at the same time for a 0.44% decrease after ending Friday at $59.20 per barrel.