By Virginia Harrison, MarketWatch
SYDNEY (MarketWatch) — Crude-oil futures broke through $100 a barrel in electronic trading Tuesday after data showed China’s economy grew faster than expected in the fourth-quarter.
Light, sweet crude for February delivery CL2G +1.68% added 1.6%, or $1.57, to $100.27 on the New York Mercantile Exchange during Asian trading hours.
Data out Tuesday showed that China’s economy grew at 8.9% in the fourth quarter of 2011 compared to a year ago. Read full story on the economic data.
The data appeared to reduce some concern that Europe’s debt-related problems would result in a sharp slowdown for the Chinese economy.
“While the Chinese economy will likely slow further in 2012, it remains in strong shape and should be supported by judicious easing of monetary policy,” Commsec chief economist Craig James said.
Oil found support in a weaker dollar, with the dollar index DXY -0.51% , which measures the greenback against a basket of six currencies, trading at 81.111 in Asia on Tuesday, compared to 81.436 in European trade on Monday.
A softer greenback tends to encourage crude investment, as it makes the commodity more affordable to holders of other currencies.
Virginia Harrison is a MarketWatch reporter based in Sydney.
