IV:Crude oil futures re-approach 4-month high after China trade data
Investing.com - Crude oil futures advanced during European morning hours on Thursday, with prices re-approaching a four-month high following the release of robust trade data from China.
China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.
On the New York Mercantile Exchange, light sweet crude futures for delivery in February traded at USD93.67 a barrel during European morning trade, up 0.6% on the day.
New York-traded oil prices rose by as much as 0.7% earlier in the day to hit a session high of USD93.72 a barrel. Oil futures touched USD93.82 a barrel on January 2, the strongest level since September 19.
Appetite for growth-linked assets improved after official data showed that China’s trade surplus widened more-than-expected in December, adding to signs of recovery in the world’s second largest economy.
Chinese exports grew 14.1% from a year earlier in December, blowing past expectations for a 5% gain and up from a 2.9% increase in November.
Imports expanded by 6% from a year earlier, beating expectations for a 3.5% increase and following on from zero growth the previous month.
China's imports of crude oil rose 1.3% last month to 23.67 million tons, according to the data.
Investors now looked ahead to the European Central Bank’s policy meeting later in the day. The ECB was widely expected to hold off cutting rates, but some market participants expected President Mario Draghi to flag the possibility of rate cuts later in the year.
Market players were also looking forward to Spanish and Italian bond auctions later Thursday that will test appetite for peripheral euro zone debt.
Focus was expected to remain on the U.S. economy, as investors remained jittery over the longer term fiscal outlook, with negotiations on raising the U.S. debt ceiling still to come in February.
The country was to release its weekly government report on initial jobless claims later in the day.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for February delivery rose 0.45% to trade at USD112.24 a barrel, with the spread between the Brent and crude contracts standing at USD18.57 a barrel.
