DTN Oil Update

Karim Bastati
DTN Analyst

VIENNA (DTN) -- Oil futures softened Monday morning after official Chinese data revealed a slowdown in industrial production and retail sales growth last month. On Friday, rating agency Moody's downgraded the U.S. sovereign credit rating over debt concerns.

NYMEX-traded WTI for June delivery was down $0.29 barrel (bbl) to trade near $62.20 bbl, and ICE Brent for July delivery fell $0.41 bbl to $65.00 bbl.

June RBOB gasoline futures softened by $0.0234 to $2.1184 gallon, while the front-month ULSD futures contract was down $0.0151 to $2.1255 gallon.

The U.S. Dollar Index softened by 0.836 points to 100.110.

Data published by China's National Bureau of Statistics on Sunday showed industrial production in April grew 6.1% year-on-year, compared to 7.7% in March. Retail sales were up 5.1% year-on-year, compared to 5.9% in March and lower than the forecasted 6%. These latest data points added to concerns over Chinese economic growth.

Moody's downgrade of the U.S. from Aaa to Aa1 came of the back of high federal debt, large deficits and growing interest costs. The agency also changed its outlook from "stable" to "negative." Higher interest costs and deficits could necessitate spending cuts and complicate tax cuts, hampering economic growth.