Crude oil prices mixed in Asia after positive Chinese trade data

SINGAPORE: Oil was mixed in Asian trade after China recorded a trade surplus, appearing to allay concerns about faltering demand in the world’s second largest economy and biggest energy user.

New York’s main contract, light sweet crude for delivery in June, turned higher in the afternoon, gaining six cents to US$ 95.68 a barrel, while Brent North Sea crude for June delivery shed 13 cents to US$ 104.27.

China swung back to a trade surplus of US$ 18.2 billion in April after posting a rare deficit the previous month, official data showed yesterday.

April imports increased 16.8 per cent year on year to US$ 168.9 billion, Customs said, while exports rose 14.7 per cent to US$ 187.1 billion.

In March, the country had posted a deficit of US$ 880 million.

“The general consensus is that the Chinese trade surplus in April points towards stronger demand, despite some scepticism about its accuracy,” Kelly Teoh, market strategist at IG Markets Singapore, told AFP.

Further short-term gains in oil prices would however be curbed by concerns over burgeoning US crude stockpiles, Teoh added.

The US Department of Energy was expected to release its weekly inventory report late yesterday.

Analysts polled by Dow Jones Newswires projected an increase of 1.4 million barrels in the week ended May 3.

Last week the department said crude supplies hit their highest level since 1982, when the weekly report began, indicating that production was outstripping demand and putting downward pressure on prices. — AFP