China's import/export data pushes crude oil prices higher
Crude futures were higher today after the world’s second largest energy consumer China reported a 32.7% year on year and 16.7% month on month increase in imports and exports in December, with exports rising 17.7% from the previous year to US$130.73 billion following 13 months of declines, while imports amounted to US$112.29 billion, marking a 55.9% year on year and 18.8% month on month increases.
Imports for the full year 2009 declined 11.2$ to US$1 trillion, while exports for the same period fell 13.9% to US$2.21 trillion.
This data bodes well for oil demand in the current year, positively impacting the crude prices. The greater than expected increases in imports and exports included a 24% increase in oil imports to 21.3 million metric tonnes during the month of December.
The US Dollar also contributed to the rise of crude prices, sliding 0.5% against a basket of currencies today following Friday’s disappointing employment data, which showed the loss of 85,000 jobs in the month of December, while a small increase was expected. The unemployment rate remained unchanged at 10%.
The American currency stayed in decline last week, taking another hit from an update from the National Association of Retailers, which came out earlier in the week to show a 16% month on month decline in pending home sales in November. Getting help from the weakness of the US Dollar, an unexpectedly cold weather and the latest Chinese import and export data, crude has been able to post solid gains since the beginning of the year with US light, sweet crude for February delivery improving from just above US$81/barrel to the current level of nearly US$84/barrel.
February Brent Crude stood at US$82.32/barrel.
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