2019.09.2706:21:00UTC+00Oil Headed For Weekly Loss On Weak China Data

Oil prices fell slightly on Friday and were on track for a weekly loss after official data showed that China's industrial profits declined in August amid the trade disputes with the United States.

Industrial profits decreased 2 percent year-on-year, in contrast to July's 2.6 percent increase. During January to August period, industrial profits declined 1.7 percent annually, the same rate of fall as seen in first seven months of 2019.

Benchmark Brent crude shed 0.4 percent to $62.51 a barrel , while U.S. crude futures were marginally lower at $56.38 a barrel. Both were down around 2.5 percent for the week.

The downward pressure comes after data showed a surprise buildup in U.S. crude stockpiles last week and reports suggested that Saudi Arabia has managed to restore its oil production faster than expected.

Meanwhile, the International Energy Agency (IEA) indicated today it might cut its growth estimates for global oil demand for 2019 and 2020 should the global economy weaken further.

"It will depend on the global economy. If the global economy weakens, for which there are already some signs, we may lower oil demand expectations," Reuters quoted IEA Executive Director Fatih Birol as saying.