Increased Chinese Oil Imports Mean Higher Prices

By CnAgri Print

Brent oil prices rose slightly on Monday after Chinese data showed oil imports increased last month, a sign of robust demand for commodities in the world's No. 2 oil consuming country. According to Reuters, Chinese customs data showed imports rose to 5.69 million barrels per day last month, which tried for the third-highest monthly level ever and was up 3 percent from a year-earlier figures. Iron ore imports also rose, and China's oil refinery runs reached a record last month above 10.1 million barrels a day.

The data helped boost expectations for steady global demand among oil traders. Brent crude's gains ended a five-day slide for the global benchmark, while U.S. crude futures fell slightly in afternoon trading, after being higher most of the day, as forecasts showed unseasonably warm weather that could limit demand for fuel.

"The Chinese figures are another confirmation that Chinese oil demand is accelerating again, and there are good reasons to expect that it will carry on growing strongly next year," said Carsten Fritsch, senior oil analyst at Commerzbank in Frankfurt.

Optimism about Chinese growth was tempered by customs data released there on Monday that showed the country's exports expanded less rapidly than expected last month.

Meanwhile, Brent for January delivery rose 31 cents to settle at $107.33 per barrel, while U.S.-traded West Texas Intermediate fell 37 cents to $85.56 per barrel, posting a fifth day of losses.

The divergence widened the spread between the European and U.S. benchmarks to around $21.70 a barrel, from as narrow as$20.45 last week.