Brent steadies near US$ 106, China import growth supports

Thursday, 11 April 2013 00:00 - - {{hitsCtrl.values.hits}}

Reuters: Brent crude futures steadied around US$ 106 per barrel on Wednesday after China’s total imports surged in March, suggesting that recovery in the world’s No. 2 oil consumer is gathering momentum.

Chinese imports grew 14.1% in March, while exports climbed 10%, relieving concerns over the subdued import growth of previous months. Crude imports slipped 2.1% from a year ago, in line with market expectations.

“The trade numbers bode well for the global economy; the drop in crude imports doesn’t really change the overall picture,” an oil risk manager at Mitsubishi Corp in Tokyo Tony Nunan said.

“The oil markets are struggling and looking for support, and this should keep them supported for now.” Geopolitical concerns also bolstered oil prices, especially simmering tensions in Iran and North Korea.

Front month Brent futures had slipped 20 cents to US$ 106.03 per barrel by 0655 GMT, after posting their biggest gain since December in the previous session, helped by a weak dollar and tame Chinese inflation data.

US crude fell 43 cents to US$ 93.87 per barrel after inventory data showed crude increased by a larger-than-expected 5.1 million barrels, compared with analyst expectations for a 1.5 million-barrel rise.

Brent could slip back to US$ 105.38 per barrel after hitting resistance at US$ 106.60, according to Reuters technical analyst Wang Tao.