Breaking News Bar
updated: 1/11/2013 7:18 AM

Oil near $94 as China inflation picks up

hello
Success - Article sent! close
  • Luis Cuevas changes the gas prices at the Shell station off California State Route 99. Forecasters say that ample oil supplies and weak U.S. gasoline demand will keep a lid on prices in 2013.

      Luis Cuevas changes the gas prices at the Shell station off California State Route 99. Forecasters say that ample oil supplies and weak U.S. gasoline demand will keep a lid on prices in 2013.
    Associated Press

 
Associated Press

BANGKOK -- Oil prices edged up Friday but gains were contained by a rise in China's inflation that if sustained could limit measures to support growth.

Benchmark oil for February delivery was up 3 cents to $93.85 per barrel at midday Bangkok time in electronic trading on the New York Mercantile Exchange.

Order Reprint Print Article
 
Interested in reusing this article?
Custom reprints are a powerful and strategic way to share your article with customers, employees and prospects.
The YGS Group provides digital and printed reprint services for Daily Herald. Complete the form to the right and a reprint consultant will contact you to discuss how you can reuse this article.
Need more information about reprints? Visit our Reprints Section for more details.

Contact information ( * required )

Success - request sent close

The contract rose 72 cents to finish at $93.82 a barrel in New York on Thursday, a gain that traders attributed to a rebound in China's trade growth, which suggests a possible recovery in global demand.

Data released Thursday showed China's export growth in December more than quadrupled from the previous month's level to 14 percent. Imports rose 6 percent, after failing to grow at all in November, in a sign of increasing domestic demand.

It was tempered, however, by data showing China's inflation spiking to a six-month high in December. Consumer prices rose 2.5 percent over a year earlier, the National Bureau of Statistics said, driven by a 14.8 percent jump in vegetable prices after a severe winter hurt harvests.

Higher inflation could hamper Beijing's ability to support China's recovery.

"Although this shows greater demand in China, it also stokes inflationary fears, which might lead to some form of tightening," said Stan Shamu of IG Markets in Melbourne.

Brent crude, used to price international varieties of oil, fell 34 cents to $111.55 per barrel on the ICE Futures exchange in London.

In other energy futures trading on Nymex:

-- Wholesale gasoline fell 1.5 cents to $2.778 a gallon.

-- Heating oil fell 1 cent to $3.045 a gallon.

-- Natural gas fell 0.4 cent to $3.189 per 1,000 cubic feet.

Share this page
Comments ()
Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service, click the X in the upper right corner of the comment box. To find our more, read our FAQ.