Oil drops after data shows industrial profits decline in China

TOKYO (Reuters) – After strong gains last week, oil prices were slightly lower on Monday as data released in China reinforced signs that its economy is slowing, though progress in China-U.S. trade talks has supported prices. Brent crude was down 12 cents, or 0.2%, at $61.90 a barrel by 0409 GMT, having gained more than 4% last week, its best weekly gain since Sept. 20. West Texas Intermediate (WTI) crude futures were down 16 cents, 0.3%, at $56.50 a barrel, after rising more than 5% last week, also the biggest weekly increase since Sept. 20. Profits at Chinese industrial companies fell for the second straight month in September as producer prices continued their slide, highlighting the toll a slowing economy and protracted U.S. trade war are having on corporate balance sheets. “There have been some small profit-taking sells on the weak China data released on Sunday and unwinding of weekend hedges,” said Stephen Innes, Asia Pacific market strategist at Axi Trader. “But the market remains well supported on the dip,” he added, pointing to signs of progress in China-U.S. trade talks. The two sides issued a statement on Friday saying they are close to finalizing some parts of a trade… continue reading

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