BRENT crude slipped yesterday, partly due to higher than expected inflation in China, the world’s second-largest oil user.
Chinese consumer price inflation slipped in April, yet came in above expectations at 5.3 per cent – rekindling concern that Beijing’s efforts to cool the economy would erode energy demand.
China’s soaring trade surplus, reaching $11.4bn (£6.97bn) in April, had already stoked expectations of upcoming monetary tightening.
“With CPI coming in higher than expected again today, I think that inflation concerns will continue to plague risk appetite,” said a head trader at Hong Kong-based broker.
Meanwhile, China’s industrial production climbed 13.4 per cent year-on-year in April, a slight slowdown from March’s 14.8 per cent growth.