Oil climbs above $107 on strong Chinese demand
LONDON (Reuters) - Brent crude oil rose above $107 a barrel on Monday, snapping five straight days of losses after Chinese data showed the world's biggest energy consumer was rebounding after a slowdown.
China's implied oil demand in November surpassed 10 million barrels per day (bpd) for the first time while its crude imports rose to the second-highest daily rate on record, providing more evidence of recovery after data over the weekend showed refinery runs rose to a new high.
Brent futures gained 50 cents to $107.52 a barrel by 0855 GMT, ending its longest losing streak since early November. The North Sea contract shed almost 4 percent last week.
U.S. light crude oil futures rose 45 cents to $86.38, reversing four straight days of declines.
"Chinese data is particularly strong," said Carsten Fritsch, senior oil analyst at Commerzbank in Frankfurt.
"The figures are another confirmation that Chinese oil demand is accelerating again, and there are good reasons to expect that it will carry on growing strongly next year."
Apparent oil demand in China, the largest user of energy and second-biggest consumer of oil after the United States, grew at its fastest pace in two years and was 610,000 bpd above the previous record.
China imported 5.69 million bpd of crude last month, just below an all time high of 5.98 million bpd in February this year.
Data on Sunday showed China's refinery runs rose 9.1 percent to 10.125 million bpd from a year earlier as companies started new refining units.
China's factory output and retail sales jumped in November as consumer inflation bounced off 33-month lows, indicating the country is enjoying an enviable mix of benign inflation and rebounding economic growth.
"The industrial production and retail sales data China released over the weekend build on the picture painted by recent data, which suggests that China's economy has turned the corner and is growing at over 7.5 percent annually," said Ric Spooner, chief market analyst at CMC Markets.
The data followed numbers out of the United States that showed the unemployment rate fell to a near four-year low of 7.7 percent.
Asian stock markets took heart from the positive data, rising to a 16-month high.
Investors await the outcome of a meeting of the U.S. Federal Reserve, which is expected to signal it will continue to pump money into the economy in 2013.
The market will also watch for comments on the supply outlook at a meeting of the Organization of the Petroleum Exporting Countries on December 12.
The group is expected to stick with an output target of 30 million bpd agreed a year ago despite high stockpiles and slowing demand growth because turmoil in the Middle East has kept prices above $100 for most of this year. (Additional reporting by Manash Goswami in Singapore; Editing by Alison Birrane)
- Tweet this
- Share this
- Digg this
- Sweden gets two new sightings, as hunt for undersea intruder goes on
- UPDATE 4-NY says Ocwen backdated foreclosure letters, company shares slide
- U.S. to funnel travelers from Ebola-hit region through 5 airports
- New Total boss must overhaul exploration strategy, pursue cost cuts
- Indiana police charge suspect who may have killed for decades
As well as making the lives of millions of middle class Indians easier, the sharp drop in Brent crude prices since June is a boon for Prime Minister Narendra Modi in his fight to revive an economy growing at its slowest rate since the 1980s. Full Article