Fecha Actual:August 16, 2022

Discouraging production and sales in China, pressure on markets.

The retail sales in China have been published in the last hours, leaving secondary effects on the prices of commodities and crude oil for the opening of this Monday.

The economic data turned out to be more disappointing than expected. The National Statistics Office reported that production slowed its growth in April, and Chinese retail sales fell ahead of projections.

The measurement corresponding to the month of April, had a low growth projection, at 25%, falling from 34% in March. However, the result of retail sales was 17.7%.

The data was not encouraging for industrial production either. It grew, as expected, by 9.8% in April compared to the previous year.

This resulted in a pressure on the prices of oil and commodities indicators because they represent a high consumption for industrial production.

The easing of restrictive measures on circulation and progress in inoculation plans in different European countries contributed to adding volatility to oil prices on Monday. Great Britain, France, Spain, join the list of the main countries that implemented these measures considering the arrival of the summer season and the promotion of tourism. For this reason, there is speculation about an increase in demand for the next few months.

The price of WTI is currently at $ 66.30 a barrel of oil, after an opening at $ 65.48 dbp. The same, fell towards $ 64.85 to recover and sustain a second day of rising prices.

As for BRENT, their behavior was similar. There remains a second day of rising prices. Its current price is $ 69.52 a barrel of oil, after an opening at $ 68.84 dbp. The low of the day was $ 68.20.

The price of crude oil for both indicators is among its highest for the year and the events of the last few hours contributed volatility to them. Speculation about the recovery in demand will greatly affect the prices that we will see in the coming weeks.

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