Oil Moving Lower Weak China outlook weighs on crude markets
A swathe of recent economic readings from China showed that business activity in the world’s largest oil importer remained under pressure, largely undermining expectations for a Chinese rebound this year.
The weak readings also came amid a potential escalation in a U.S.-China trade war, as Beijing blocked the export of key chipmaking materials to the U.S.
Markets are now fearing any retaliation by Washington, which could further unsettle global trade and economic activity, in turn hurting oil demand.
Weakness in China, coupled with fears of rising U.S. interest rates, has largely undermined bets for a recovery in oil demand this year. Crude prices are still trading down about 10% for the year.