Oil dives on weak China, US data
2012-04-11 12:22:27
Oil prices sank Tuesday, mirroring global equity markets, as traders fretted over weak economic data in China and the United States, and amid resurgent concerns over the eurozone debt crisis.
New York's main contract, West Texas Intermediate crude for May, dived $1.44 to close at $101.02 a barrel.
Brent North Sea crude for delivery in May tumbled $2.79 to $119.88 a barrel in London.
"Crude fell under pressure from a broader market sell-off amid renewed growth concerns (and) soft import numbers from China, including a slight slowdown to crude shipments in March," said VTB Capital analyst Andrey Kryuchenkov.
Oil was also hit by "disappointing (US) nonfarm payroll data, and concerns over China and (the) eurozone", he added.
Markets were also slammed by worries over rising eurozone government bond yields, which reflected deep concern over the region's ongoing debt crisis.
The US Labour Department reported Friday that the American economy created only 120,000 jobs in March, well short of forecasts for upwards of 200,000 jobs.
"Friday's weak nonfarm payroll data from the US has also weighed on prices, as it casts doubt over the strength of the US recovery," added analyst David Morrison at trading group GFT.
Mixed Chinese trade figures on Tuesday raised concerns about the world's number-two economy, which is also the biggest consumer of energy.
China said it recorded a trade surplus of $5.35 billion for March, reversing a trade deficit of $31.48 billion for February.
However, it also said exports rose a relatively weak 8.9 per cent, while imports were up just 5.3 per cent, suggesting domestic consumption in the country of 1.3 billion people is flagging.
Oil prices rose briefly in Asian deals earlier Tuesday on the back of worries about a possible disruption to Middle East supplies, analysts said.
Major crude producer Iran on Monday confirmed it would hold talks with world powers in Istanbul on Saturday over Tehran's controversial nuclear program.
Iran last held talks with the so-called P5+1 powers -- Britain, China, France, Russia and the United States plus Germany -- in January 2011 but with no result.