Downside economic news weighs on crude

A combination of bearish economic events weighs Friday on crude oil futures, putting the markets in a position to end the week down. The central theme that drives down prices is the global economic slowdown. Weakness in the Eurozone, China and the United States is contributing to selling pressure.

Brent crude US benchmark and international benchmark began Friday under pressure from the European Central Bank and weak Chinese trade balance statistics, but sales accelerated after the US report on mass non-farm payroll missed forecasts.

In the eurozone, European Central Bank President Mario Draghi said on Thursday that the European economy was going through a "period of continued weakness and generalized uncertainty". The conditions in the euro area were perceived as so bad that the ECB: delayed the timing of its first interest rate hike after the crisis until 2020, reduced its economic forecasts and launched a new cycle of low bank lending price.

In China on Friday, February dollar exports fell 21 percent from a year earlier. This is the biggest drop in three years and much worse than analysts expected. Imports also fell 5.2%. Until now, demand for oil has remained stable, with crude oil imports remaining above 10 million barrels per day (bpd). However, an economic downturn may weigh on fuel demand and put pressure on prices at some point.

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