Oil prices settle lower as traders weigh summer demand, weak China imports

Oil prices settled lower Friday as traders weighed up rising summer demand and data showing Chinese crude imports shrank in June.

At 14:30 ET (18:30 GMT), West Texas Intermediate crude futures fell 0.5% to $82.21 a barrel, while Brent oil futures fell 0.4% to $85.03 a barrel.  Chinese oil imports shrink in June

Data on Friday showed that Chinese imports of crude oil sank 11% year-on-year in June to 46.45 million metric tons.

The soft reading offset otherwise strong trade data from the country, which showed China's trade balance grew more than expected, while exports also surged.

But weak imports brewed concerns over sluggish crude demand in the country, especially as it grapples with weak economic growth.

Still, analysts at ANZ said that imports would likely pick up in the coming months amid low inventory levels and increased refinery activity. Dollar sinks even as PPI data surprise to upside

Crude prices also benefited from a drop in the dollar despite higher-than-expected U.S. inflation data as bets on a September rate cut remained firm.

Producer price index data, which measures the average change over time in the selling prices received by domestic producers for their output, rose to a 0.2% last month, contrary to the 0.1% rise anticipated by economists, taking the annualized figure for June to 2.6%. 

But the dollar continued to trend lower on expectations that the Fed may soon lay out the carpet for a September rate cut. 

"At this month’s FOMC meeting the Fed could provide stronger guidance that they are moving closer to cutting rates in September," MUFG said in a note. Summer demand optimism continues; rig counts drop

Sentiment on oil prices has also been propped up by signs of improving summer following data earlier this week showing an expected dip in crude inventories for the week ended July 5. 

Oilfield services firm Baker Hughes reported Friday its weekly count of U.S. oil rigs fell to 478 from 479.

Source: Investing.com