Oil on the back foot ahead of weekly supply reports, China data

Oil benchmarks on both sides of Atlantic kicked-off a brand new week on a weaker note, resuming last week’s sell-off, as traders remained cautious ahead of the weekly inventory reports and China dataflow due on the cards later this week.

Oil hovers near 8-week lows

Currently, both crude benchmarks remain in the red, with Brent down -0.49% at $ 46.53, while WTI trades -0.62% lower at $ 45.12 levels. Oil prices reversed a temporary rally seen on Friday, and resumed their recent decline, despite bullish comments from Saudi Arabia's energy minister Khalid al-Falih, noting that the oil market was becoming more balanced in terms of supply and demand and, as a result, prices were stabilizing.

The prices slid this Monday as economic slowdown concerns in the Asian region resurfaced, after the latest report showed that crude imports to Asia have been falling over the last few months. Moreover, traders refrain from placing directional bets on oil ahead of the weekly crude stockpiles report, which may provide fresh insights on the supply scenario.

Meanwhile, cautiousness also prevails as this week’s focus remains on the Chinese trade and GDP report, as China is the world’s second largest oil consumer.