BUSINESS - ECONOMY
| 2013-08-09Brent rises towards US$108 on robust China data
BRENT crude edged towards US$108 a barrel yesterday ending a four-day decline as robust Chinese data raised hopes that the world’s No.2 economy is stabilising, but uncertainty over the outlook for U.S. stimulus capped prices.
China’s overall imports and exports in July beat analyst expectations, with crude oil imports hitting a record 6,15 million barrels per day.
Brent crude for September delivery touched a high of US$107, 86 a barrel and was up eight cents at US$107, 52 a barrel in early trading. The front-month contract had settled at its lowest in a week.
US crude for September delivery rose 16 cents to US$104,53 a barrel.
“China’s economic growth remains steady but modest,” Barclays analyst Cheng Sijin said in a note, adding that high commodity imports in July may lead to a build-up in stocks that could temper Chinese appetite in coming months.
Investors also remained cautious as the US Federal Reserve could roll back its monetary stimulus as soon as next month, reducing liquidity that has underpinned global markets. The move could also boost the dollar, weighing on commodities such as oil that are priced in the currency.
Oil price gains were also capped by easing geopolitical tensions between Iran and the United States, while crude exports from the North Sea are scheduled to rise in September after maintenance.
Iran’s new president signalled willingness to negotiate with the West over Tehran’s disputed nuclear programme but Tehran-watchers say that window could close as each side waits for the other to make the first move.
In Libya, workers’ protests that have roiled crude production and exports from the OPEC member remained a key concern. Output of Libya’s main crude oil grade, Es Sider, has been completely shut down since Tuesday, along with the fields producing Amna and Sirtica, following strikes at the Es Sider and Ras Lanuf terminals.
Libya’s production is expected to fall further as workers at the country’s Arabian Gulf Oil Company (AGOCO) plan to progressively reduce output in protest over management changes and the company’s structure.
Also contributing to lower supply is Iraq where exports are set to fall sharply in September as major work is carried out at its vital southern export terminals.
In Yemen, the government said on Wednesday that it has foiled a plot by al Qaeda to seize two major oil and gas export terminals and a provincial capital in the east of the country.
In the United States, crude inventories declined by 1,32 million barrels last week, the Energy Information Administration said on Wednesday, largely in line with the 1,2-million-barrel reduction analysts had forecast.
The EIA had also reported a small rise in gasoline stocks against expectations of a decline.
China’s overall imports and exports in July beat analyst expectations, with crude oil imports hitting a record 6,15 million barrels per day.
Brent crude for September delivery touched a high of US$107, 86 a barrel and was up eight cents at US$107, 52 a barrel in early trading. The front-month contract had settled at its lowest in a week.
US crude for September delivery rose 16 cents to US$104,53 a barrel.
“China’s economic growth remains steady but modest,” Barclays analyst Cheng Sijin said in a note, adding that high commodity imports in July may lead to a build-up in stocks that could temper Chinese appetite in coming months.
Investors also remained cautious as the US Federal Reserve could roll back its monetary stimulus as soon as next month, reducing liquidity that has underpinned global markets. The move could also boost the dollar, weighing on commodities such as oil that are priced in the currency.
Oil price gains were also capped by easing geopolitical tensions between Iran and the United States, while crude exports from the North Sea are scheduled to rise in September after maintenance.
Iran’s new president signalled willingness to negotiate with the West over Tehran’s disputed nuclear programme but Tehran-watchers say that window could close as each side waits for the other to make the first move.
In Libya, workers’ protests that have roiled crude production and exports from the OPEC member remained a key concern. Output of Libya’s main crude oil grade, Es Sider, has been completely shut down since Tuesday, along with the fields producing Amna and Sirtica, following strikes at the Es Sider and Ras Lanuf terminals.
Libya’s production is expected to fall further as workers at the country’s Arabian Gulf Oil Company (AGOCO) plan to progressively reduce output in protest over management changes and the company’s structure.
Also contributing to lower supply is Iraq where exports are set to fall sharply in September as major work is carried out at its vital southern export terminals.
In Yemen, the government said on Wednesday that it has foiled a plot by al Qaeda to seize two major oil and gas export terminals and a provincial capital in the east of the country.
In the United States, crude inventories declined by 1,32 million barrels last week, the Energy Information Administration said on Wednesday, largely in line with the 1,2-million-barrel reduction analysts had forecast.
The EIA had also reported a small rise in gasoline stocks against expectations of a decline.
