Crude oil futures settled notably lower on Tuesday amid renewed worries about the outlook for energy demand due to continued surge in coronavirus cases in several countries.
The drop in prices was also due to Saudi Arabia’s decision to slash crude prices for Asia.
Data showing a strong rebound in China’s imports and exports capped oil’s losses.
China’s exports increased by 25.6% year-on-year in August, beating economists’ forecast of 17.1%. In July, exports surged up 17.1%. Imports were up 33.1% annually in August, after a 28.1% increase a month earlier. China’s trade surplus stood at $58.34 billion in August, well above the expected level of $51.05 billion.
West Texas Intermediate Crude oil futures for October ended down by $0.94 or about 1.4% at $68.35 a barrel.
Brent crude futures were down $0.61 or 0.85% at $71.61 a barrel a little while ago.
Saudi oil giant Saudi Aramco announced on Sunday that it will cut prices for all crude grades sold to Asia by at least $1 a barrel.
Further, uncertainty about the pace of global economic recovery following last week’s somewhat disappointing U.S. non-farm payrolls data also weighed on oil prices.