Ovunc Kutlu
08 March 2019•Update: 08 March 2019
ANKARA
Oil prices started Friday on a lower note as investors expect weaker global oil demand following lower Eurozone growth estimates and declines in Chinese exports in February.
International benchmark Brent crude was trading at $65.92 per barrel at 0630 GMT with a 0.2 percent decline after it closed Thursday at $66.07 a barrel.
American benchmark West Texas Intermediate was $56.36 a barrel at the same time for a 0.2 percent loss after ending the previous session at $56.46 per barrel.
Beijing reported earlier Friday that Chinese exports fell by 20.7 percent in February year-over-year - much higher than the market expectation of a 4.8 percent decrease.
China's overall trade surplus in February came in at $4.12 billion - also much lower than the $26.38 billion .
The weak trade data for the world's economy is indicative that crude demand could decline forcing oil prices lower in the coming months.
President of the European Central Bank Mario Draghi said Thursday that economic growth in the Eurozone is now expected to be 1.1 percent in 2019, lower than the previous expectation of 1.7 percent.
"We are in a period of continued weakness and pervasive uncertainty. The near term growth outlook will be weaker than previously anticipated," Draghi said.
"The persistence of uncertainties related to geopolitical factors, the threat of protectionism and vulnerabilities in emerging markets appears to be leaving marks on economic sentiment," he added.
U.S. President Donald Trump, on the other hand, remained positive noting that the recent trade tensions between Washington and Beijing could soon be resolved.
According to Trump on Thursday, trade talks between the world’s two largest economies are "moving along" and "going pretty well."
Trump and his Chinese counterpart Xi Jinping are set to meet at either the end of March or early April in the U.S. state of Florida to fine-tune the latest version of a new trade agreement to end trade tensions between the two countries.
A successful trade agreement would create positive sentiment for the Chinese economy and push crude oil prices up.
