By V. Phani Kumar, MarketWatch HONG KONG (MarketWatch) — Crude-oil futures declined on Monday as the U.S. dollar appreciated further and Asian equity markets broadly declined following an unexpectedly large trade deficit for China. Light, sweet crude-oil futures for delivery in April CLJ2 -0.59% lost 80 cents, or 0.7%, to $106.60 a barrel in electronic trading during Asian business hours. The contract had risen 82 cents Friday on the New York Mercantile Exchange, following a better-than-expected U.S. employment report for February. The U.S. dollar DXY +0.09% strengthened further against major global currencies on Monday on the upbeat jobs data, applying pressure on commodities whose prices are benchmarked in the greenback, such as crude. Most Asian stock markets also declined, as sentiment sagged after China reported a much bigger than expected trade deficit of $31.48 billion in February, turning around sharply from a $27.28 billion surplus in January. Read Asia Markets. The negative trade balance was attributed to seasonal distortions, as well as weakening demand for the country’s exports. Read full story on China’s trade balance. China’s exports rose less than expected while imports climbed more than anticipated by economists, with the country importing record volumes of crude-oil during the month. China’s February imports rose 18.5% from the year-earlier period to 23.64 million metric tons. Among other energy products, April futures for gasoline RBJ2 -0.25% fell 0.2% to $3.33 per gallon and the contract for heating oil HOJ2 -0.10% slipped 0.3% to $3.26 per gallon. Natural gas futures for delivery in April NGJ12 -2.19% dropped 1.9% to $2.28 per million British thermal units. Varahabhotla Phani Kumar is a reporter in MarketWatch's Hong Kong bureau.

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