Oil Mixes as China’s GDP Declines 6.8%, while US Releases Plan to Revive Its Economy

Oil Prices mixed in early trading session on Friday following the Chinese first quarter GDP report in a decline of 6.8%, otherwise gained a positive sentimental from the U.S. President Donald Trump issuing a guidelines for “Opening up America Again” to revive its economy.

 

As of 12:51 local time in Thailand, the price of WTI was at $19.56/bbl, dropped $0.31/bbl or 1.56%. Meanwhile, Brent was traded at $28.25/bbl, rose $0.43/bbl or 1.55%. 

 

The National Bureau of Statistics of China reported a contraction in its 1Q20 GDP at 6.8% from a year ago as the country is the first country to take hit from the coronavirus outbreak since late December 2019. 

 

That report has come after Trump announced a plan to reopen the U.S. economy by relaxing some of the strict social distancing measures.

 

“Oil markets found baseline support from President Trump’s U.S. reopening plan,” said Stephen Innes, market strategist at AxiTrader. Still, downside risk remains the dominant factor, he said, according to Reuters.

 

Both oil benchmarks are heading for a second consecutive week of losses, with U.S. oil around 18-year lows: Analysts have slashed forecasts for prices and demand due to the spread of the coronavirus and oversupply concerns.