Crude Oil Weakens on Bearish US, German Economic Outcomes

Consequently, Brent futures fell by 21 cents or 0.3 per cent to settle at $76.30 a barrel and the US West Texas Intermediate (WTI) crude depleted by 40 cents or 0.5 per cent to trade at $73.56 per barrel.

In the US, the world’s biggest economy, new orders for manufactured goods fell in November amid weakness in demand for commercial aircraft while business spending on equipment appeared to have slowed in the fourth quarter, according to data from the Commerce Department’s Census Bureau.

In Germany, Europe’s biggest economy, annual inflation rose more than forecast in December due to higher food prices and a smaller drop in energy prices than in previous months.

To combat higher inflation, central banks often boost interest rates, which can slow economic growth and demand for energy.

Meanwhile, the market is looking at the weather as a winter storm occured across the US, causing prices for natural gas and heating fuel to spike 10 per cent on Monday, while diesel futures closed at their highest level since October.

Severe travel disruptions were expected across the storm’s path and officials urged drivers to stay off the roads if possible.

Governors in several states, including Kansas, Kentucky, Arkansas, West Virginia, Virginia and Maryland, have declared states of emergency.

Support also came as the US Dollar slumped more than 1 per cent against a basket of other currencies as President-elect Donald Trump reportedly mulled tariffs that would only be applied to critical imports, potentially a relief for countries that were expecting broader levies.

The US Dollar, however, pared much of that decline after Mr Trump denied the newspaper report.

A weaker US currency makes dollar-priced commodities like oil cheaper for buyers using other currencies.

In China, the world’s second-biggest economy, the Yuan ended the domestic session at its weakest level in 16 months against the US Dollar, weighed down by trade concerns.

In a sign of firmer demand expectations, Saudi Arabia, the world’s top oil exporter, raised crude prices for Asian buyers in February for the first time in three months.

Sudan, meanwhile, lifted a nearly year-long force majeure on the transport of crude oil from its neighbour South Sudan to a port on the Red Sea after security conditions improved.

Also, the Biden administration plans to impose more sanctions on Russia over its war on Ukraine, taking aim at its oil revenues with action against tankers carrying Russian crude