Brent steady above $105, sheds early gains after China data

Friday, 25 May 2012 00:00 - - {{hitsCtrl.values.hits}}

SINGAPORE (Reuters): Brent crude was steady above $105 per barrel on Thursday, backing off from a more than $1 gain seen earlier in the day, as weak economic data from China added to worries about demand outlook already muddied by the festering euro zone debt crisis.

Easing fears of oil supply as talks between Iran and the West on Tehran’s disputed nuclear programme progressed also kept gains in check. Brent had earlier rallied to $106.68 as traders covered short positions after prices hit their lowest in more than five months in the session before.

Brent crude oil slipped 11 cents to $105.45 a barrel by 0748 GMT, after earlier touching a high of $106.68. On Wednesday, Brent had reached a session low of $105.39, the lowest intraday price since Dec. 20.

U.S. crude advanced 23 cents to $90.13, after earlier reaching a high of $90.81. It settled at $89.90 a barrel on Wednesday, the lowest close for front-month U.S. crude since Oct. 21.