Brent Steady As Investors See A Silver Lining In Lackluster Chinese Data

Brent crude oil was steady above $109 as investors kept a close eye on the developing situation in Ukraine and breathed a sigh of relief following in-line Chinese data.

The commodity traded at $109.40 at 8:22 GMT on Wednesday morning as investors tried to see the silver lining in the lackluster Chinese data.

Data showed that China’s annual growth in the first quarter slowed to 7.4 percent, the nation’s slowest pace in 18 months.

However, the figure came in marginally above analysts’ expectations which helped take away some of the worries about the nation’s downturn.

Many are expecting to see the Chinese economy pick up in the second quarter, saying that government efforts to underpin growth are creating a bit of stability.

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Meanwhile, geopolitical tension continued to support Brent prices as the situation in Ukraine grew more uncertain. Despite a recent peace agreement made between Russia and Ukraine last week, the region’s conflict seemed to intensify this week after Ukraine’s interim president Oleksander Turchynov stepped up the Ukraine’s military presence.

CNBC reported that he called on government troops to relaunch an offensive against the pro-Russian separatists that have been occupying several of the nation’s government buildings.

Moving forward, investors will be waiting for data from the US Energy Information Administration for a better idea of the US’ demand outlook. The data, expected later on Wednesday, is expected to show that the nation’s oil stocks declined as summer demand ramped up.

Though US demand seems to be improving, many are still concerned about oversupply as oil from Libya and Iran is reintroduced to the market.