Oil Prices Ease on Weaker Economic Data from China, Japan

Oil Prices Ease on Weaker Economic Data from China, Japan

Oil prices eased on Wednesday, giving up earlier gains, after China and Japan reported weak economic data, fueling concerns about growth and oil demand in the world's top consumers.

Brent crude futures was down 34 cents, or 0.3%, to $104.30 a barrel at 0501 GMT, while US West Texas Intermediaten(WTI) crude futures fell by 46 cents, or 0.5%, to $100.14 a barrel. Both contracts had surged more than 6% in the previous session.

China's crude oil imports slipped 14% from a year earlier, extending a two-month slide, as strict measures to curb the spread of COVID-19 impacted demand in the world's top crude importer.

The world's top crude oil buyer imported 42.71 million tons last month, equivalent to 10.06 million barrels per day, data from the General Administration of Customs showed on Wednesday.

Oil prices had rebounded on Tuesday as reports of partial easing of some of China's tight COVID-19 lockdowns helped stoke bullish sentiment among market players.

However, Asia remains less bullish about China's COVID situation than overseas markets, said OANDA senior market analyst Jeffrey Halley.

The Chinese city of Shanghai warned on Wednesday that anyone who violates strict COVID-19 lockdown rules will be dealt with strictly, while also rallying people to defend their city