Oil prices fell on Wednesday as disappointing economic data from China and data showing a rise in U.S. crude inventories overshadowed investor optimism over a temporary U.S.-China tariff truce.
Benchmark Brent crude declined 0.7 percent to $60.88 a barrel, after climbing as much as 4.7 percent the previous day, marking the biggest percentage gain since December.
U.S. crude futures were down 1.2 percent at $56.41 a barrel, after having risen 4 percent on Tuesday, the biggest gain in over a month.
China’s industrial production and retail sales grew at weaker pace in July, suggesting a further loss of momentum in the world’s second-largest economy.
China’s industrial output growth eased to 4.8 percent in July from 6.3 percent in June. Output was forecast to expand 6 percent.
Likewise, growth in retail sales slowed to 7.6 percent from 9.8 percent a month ago. This was the weakest growth in three months.
Elsewhere, German GDP shrank 0.1 percent sequentially in the second quarter and Eurozone economic growth halved in the second quarter, as initially estimated, raising concerns about the state of the global economy.
Meanwhile, data from industry group the American Petroleum Institute showed an unexpected rise in U.S. crude stocks last week.
Crude inventories increased by 3.7 million barrels to 443 million, compared with analyst expectations for a decrease of 2.8 million barrels.
Inventory data from the Energy Information Administration will be released later in the day.
The material has been provided by InstaForex Company – www.instaforex.com