WTI erased earlier drops, remains lower on the day

West Texas Intermediate was pressured today by negative China economic data that was published during the weekend. Prices found some support by U.S. data on Friday and conflict in Sudan that could cut off crude supply from South Sudan.

On the New York Mercantile Exchange, WTI crude for July delivery traded at $95.84 a barrel at 14:41 GMT, marking a 0.20% loss on the day. Prices ranged between a session low of $95.22 a barrel at 13:50 GMT and $96.24 earlier in the day.

Brent oil futures for August delivery traded at $104.31, down 0.06% on the day at 14:52 GMT. Prices varied between a days low of $103.64 a barrel and high at $104.59.

After Chinese officials revealed information last week on manipulators who used currency conversions to boost export data, much lower figures were expected than forecast earlier. Chinese exports jumped by only 1% in May and shipments to the U.S. and European Union, the Asian nation’s two biggest export targets, declined for a third straight month. China’s imports were projected to gain 6% but official figures strayed well below and showed a 0.3% decrease, marking a ten-month low.

Consumer inflation shrank to 2.1%, mismatching a 2.9% forecast and Producer Price Index (PPI) tumbled 2.9%, above expectations of a 2.5% decrease. The M2 money supply jumped 15.8%, missing 15.9% expectation. Retail Sales met projections of a 12.9% gain and so did Industrial Production with a 9.2% increase on an annual basis.

Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts said for Bloomberg: “The Chinese economic news is bearish. With the run-up we had, people are just feeling that maybe it’s a little too much given the economic situation especially in China.”

Oil prices drew support earlier amid concerns about Sudan blocking oil exports from South Sudan, which is a significant source of crude for China and other Asian nations. The reason lies within belief that South Sudan, which seceded from Sudan in July 2011, is backing rebels who oppose the rule of Umar al-Bashir, the Sudanese President. Sudan edged back on Sunday, saying the country will withdraw its decision if its neighbor stops supporting the rebels.