Brent oil prices open Monday’s trading session back near $12 a barrel on concerns of slower economic growth in China after customs data released Saturday showed the world’s second largest economy swung to a huge trade deficit of $31.48 billion in February.
Latest Brent Oil Price
In London, Brent crude oil futures for April 2012 delivery was trading at $125.40 a barrel, 07.55 GMT today on the ICE Futures Exchange.
Chinese Trade Deficit
China’s trade deficit, which is the largest for at least 12 years comes as Chinese firms efforts to sell to the country’s major trading partners in the West are suffering from the effects of the eurozone debt crisis and a weak US economic recovery.
January-February export growth slowed to 6.9 percent over the same two-month period last year, barely half of December’s 13.4 percent rate. Imports for the two months rose 7.7 percent, down from December’s 11.8 percent. China is a major importer of oil and other fuels.
“There has been a pullback in oil prices, mostly as a reaction to the huge trade deficit in China in February and concerns over slower growth in China.” said Victor Shum, senior principal at Purvin and Gertz international energy consultants, Singapore.
Some analysts worry that higher oil prices will eventually undermine economic growth and demand for Asian goods in the US and Europe.
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Brent oil trading back at $125 a barrel on China energy demand concerns
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