Oil prices rise on China exports, lower dollar

Oil prices rise on China exports, lower dollar
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Summary Oil prices rose on Thursday on on strong Chinese export data and the lower US dollar.

 

Crude oil prices rallied Thursday, briefly reaching three-month highs, on strong Chinese export data and the lower US dollar.

 

Oil prices for US benchmark West Texas Intermediate futures for February delivery reached as high as $94.70, a level last seen in September, before settling 72 cents higher at $93.82 a barrel.

 

European benchmark Brent oil futures settled 13 cents higher at $111.89 a barrel.

 

The jump came after Chinese government data showed strong export results. China s trade surplus soared 48.1 percent to $231.1 billion in 2012, though total trade volume grew at a much slower pace in the face of economic weakness at home and abroad.

 

China s exports rose 7.9 percent to $2.05 trillion from the year before, while imports increased 4.3 percent to $1.82 trillion, the national customs bureau said.

 

In December, exports and imports hit new single-month highs, rising 14.1 percent to $199.2 billion and six percent to $167.6 billion, respectively.

 

The results are the latest in a string of data in recent months that indicate that China, the world s second-biggest consumer of oil after the US, was regaining momentum, analysts said.

 

"After losing altitude last year, Asia s economic engine, led by China, has fired up again," global banking giant HSBC said in a market commentary.

 

Oil prices were also boosted by the decision of the European Central Bank not to cut interest rates, which was coupled with a comment from ECB chief Mario Draghi that the group was "unanimous" in keeping interest rates at current levels.

 

Draghi s comments suggested interest-rate policy is off the table for the foreseeable future and helped push the dollar lower.

 

A weaker greenback can make dollar-priced crude cheaper for buyers using rival currencies, in turn stimulating oil demand.

 

The European single currency jumped to a one-week high at $1.3217 after the ECB s move Thursday.
 

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