Friday, February 8, 2013

Oil price nears $118 on China trade data



LONDON, Feb 8 (Reuters) - Oil surged towards $119 per barrel on Friday as robust trade data from China strengthened the outlook for demand and rising tension in the Middle East stoked concern over supply.
China's January exports and imports beat forecasts in a Reuters poll, adding to signs of a rebound in the world's second biggest oil burner. A rise in China's crude imports to the third highest daily rate on record in January also buoyed prices.
Brent hit a nine-month high, climbing $1.46 to $118.70 by 1438 GMT, targeting a fourth week of gains. U.S. crude added 62 cents to $96.45.
According to Goldman Sachs, Brent's rally is "less driven by supply shocks and instead by improving demand."
"Global oil demand has surprised to the upside in recent months, consistent with the pick-up in economic activity as reflected in the rebound in global PMIs," it said in a research note. "We expect global inventories to remain tight in the near term."

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