Oil prices edge down ahead of expected weak China data

Oil prices nudge up on Chinese economic data

Oil prices nudge up on Chinese economic data

Oil and natural-gas production in the Gulf of Mexico on Monday was picking up again after Hurricane Barry was downgraded to a tropical depression.

There were 1.3 million barrels per day (bpd) of oil production offline in the U.S. -regulated areas of the Gulf of Mexico on Monday, about 80,000 barrels fewer than on Sunday, according to the U.S. Bureau of Safety and Environmental Enforcement (BSEE).

Last month, the U.S. Energy Information Agency (EIA) cut its forecasts for 2019 world oil demand growth and U.S. crude production in light of the growing trade tensions between the world's two largest economies that have crippled economic activity.

Still, economic growth of just 6.2% in the second quarter of 2019 - the weakest in almost three decades - highlighted the impact of trade tensions with Washington and raised the possibility more incentives might be needed to jump-start the economy. The U.K. and its allies are considering beefing up their military presence in the Persian Gulf to deal with the threat to shipping posed by Iran.

West Texas Intermediate for August delivery added 22 U.S. cents to US$60.43 a barrel on the New York Mercantile Exchange as of 8.43am New York time.

The headlines pushed US crude down to the $57 per barrel level, while the global benchmark Brent is hovering around $64 per barrel. "The basic message is that the second half of this year will see some depletion in global oil inventories but this will be followed by a dismal 2020, especially the first six months of next year", PVM analyst Tamas Varga said.

Barry led to about 73% of oil production in the Gulf being shuttered, with the region accounting for about 16% of America's output. China's gross domestic product rose 6.2 per cent in the second quarter from a year earlier, below the 6.4 per cent expansion in the first quarter. U.S. Crude stockpiles dipped over 9 million barrels which pushed Crude prices higher.

His comments came as Iran continues its own high-pressure campaign over its nuclear program after Mr. Trump unilaterally withdrew America from the accord over a year ago.

There are no more oil tankers left inside the Persian Gulf flying the flags of the United Kingdom, the Isle of Man, or Gibraltar, according to ship-tracking data compiled by Bloomberg.