Oil Prices Gain Despite Weak China CPI, U.S. Retails Data
Friday, 15 February 2019 13:44 WIB |
Oil prices rose on Friday in Asia after briefly falling on a weak U.S. retail sales data report.
U.S. retail sales tumbled 1.2% in December, the first time in 10 months, the Commerce Department reported on Thursday. Economists had forecasted a gain of 0.1% for the period.
Meanwhile, China's January Consumer Price Index came in at 1.7% and was below the market estimate of 1.9%. The Producer Price Index was also disappointing at 0.1%, compared to an estimated 0.3%.
U.S. stocks closed lower overnight and Asian equities also headed lower on Friday following the release of the reports. Impact of such data on oil prices seem to be limited, as prices quickly recovered and are currently trading in the green.
U.S. Crude Oil WTI Futures was up 0.4% at 54.62 by 1:01 AM ET (06:01 GMT), while the international Brent Oil Futures gained 0.5% to 64.85.
Analysts at TD Securities believe while CPI and PPI data were both below expectations, traders™ focus might have shifted towards the prospect of more stimulative monetary policies from Chinese authorities, which would in turn help supporting economic growth.
In other news, reports of an oil production cut by Russia and Saudi Arabia were also cited as tailwind for oil prices.