BLBG:Oil Futures Tad Up on China Data, Weaker Dollar
By Mari Iwata
Crude oil futures fluctuated in positive territory Thursday in Asia, as encouraging Chinese trade data failed to generate a market surge.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in September traded at $104.41 a barrel at 0604 GMT, up $0.04 in the Globex electronic session. September Brent crude on London's ICE Futures exchange rose $0.01 to $107.45 a barrel.
The world's second-biggest crude oil consumer imported 20% more on-year crude oil in July, China's General Administration of Customs said.
Its overall trade data showed exports rose 5.1% from a year earlier, above economists' median forecast of 2.8%, and imports rose 10.9%, compared with economists' median forecast of 1.3%.
Benchmark crude prices moderately rose after the data boosted broader Asian shares, but crude later pared most of the day's gains on a weaker U.S. dollar against the yen.
"China's growth is definitely good news, but I'm not sure 100%," said Koichiro Kamei, analyst of Market Strategy Institute, raising doubts over accuracy of Chinese data. "We need to look at factors that directly affect physical demand," said Mr. Kamei, adding he wants to wait fotr China's consumer price, retail sales and industrial production data, all due Friday.
Timothy Evans, Energy Futures Specialist of Citi Futures and OTC Clearing, said in a note that crude oil prices are likely to erode over time despite recent positive U.S. economic data, because rising oil supply in the world largest oil user has caused global excess that isn't easily absorbed by economic growth.
Nymex reformulated gasoline blendstock for September--the benchmark gasoline contract--rose 139 points to $2.8850 a gallon, while September heating oil traded at $2.9660, 18 points higher.
ICE gasoil for August changed hands at $903.50 a metric ton, down $2.50 from Wednesday's settlement.
