Frail demand for fuel in China
On Friday, the price of American crude oil WTI fell by more than 1.2%, and today’s session in the market also began inheritance – now has more than 1%. Therefore, WTI oil prices once again moved closer to important technical support level around 92,60-92,80 per barrel and now this barrier is tested by the supply side.
This morning, the attention of investors in the oil market attracted the data from China. Have been published since information on foreign trade in the Middle Kingdom. They are important for many commodity markets for one simple reason: China is at the forefront of the majority of importers and consumers of raw materials and goods in the world.
According to current data, in August, China imported an average of 5.93 million barrels of oil a day. This is slightly less than the amount of the average imports in July (6.03 million barrels). Current numbers are better than last year’s imports of crude oil to China, which in the first eight months of 2013. Was on the average level of 5.58 million barrels per day.
Although the above information seem to be optimistic, it is worth mentioning that while in the first eight months of this year, imports of fuels to China proved to be significantly lower than in the corresponding period of the previous year. This means that the previous year’s forecasts for fuel demand in China should be approached with caution.
Copper price up after data from China
In turn, the copper market data on China’s foreign trade led to a completely different reaction. As reported in today’s calculations, in August copper imports to the Middle Kingdom amounted to 340,000 tons, so much as in July.
Although the growth rate is not thrilled, it has been received by the market as a positive sign. Speculation concerning the misuse of copper as collateral for financial transactions and difficulty in obtaining financing for smaller Chinese companies raised legitimate concerns because of the volume of imports of copper to China.
The fact that imports remained stable, can attest to the fact that there is a large demand for copper in China from the industry itself, and not by the entities using the metal as collateral for borrowing.
As a result, copper prices in the United States this morning significantly increased, reaching back to the vicinity of $ 3.20 per pound, and so to the highest level in almost two weeks. Currently, the nearest level of technical resistance area is 3.22 USD per pound.
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