NYMEX crude gain in Asia after China trade data Investing.com – Crude oil staged a rebound in Asia after a surprise increase in China’s December wxports, brushing off earlier bearish supply data by a U.S. industry group.
The American Petroleum Institute said fell by 3.9 million barrels last week, while gained 3.7 million barrels and jumped 7 million barrels.
On the New York Mercantile Exchange, WTI crude for February delivery gained 0.64% to $ 30.70 a barrel, reversing an earlier loss after trade data from China came in.
China reported December rose 1.4%, far outpacing an expected 8.0% drop and the first gain in six months, while fell 7.6%, less than the 11.5% drop seen.
The came in at $ 60.09 billion, wider than the expected $ 53 billion surplus.
As well, China’s exports rose in December for the first gain in six months, initial figures in yuan terms showed Wednesday. Data from the General Administration of Customs showed a gain of 2.3% for exports in December compared with a year earlier in yuan terms. Imports fell 4.0% in December in yuan terms.
In 2015, exports fell 1.8% and imports declined 13.2% with a trade surplus of RMB3.69 trillion expanding 56.7% from 2014.
As well, the yuan’s central parity rate against the U.S. dollar was set at 6.5630 Wednesday, slightly weaker than Tuesday’s 6.5628, the People’s Bank of China said.
Meanwhile, Wednesday’s government report from the Department of Energy could show that U.S. rose by 2.5 million barrels for the week ending on January 8.
A week earlier, crude stockpiles fell by 5.1 million barrels, significantly below forecasts for a build of 500,000 barrels. While a considerable draw has generally provided upside pressure for crude prices in recent months, inventories are typically drawn down in the final weeks of the year as companies look to avoid year-end tax burdens.
Overnight, futures erased gains from earlier in the session on Tuesday to drop to fresh 12-year lows, ahead of the release of the American Petroleum Institute’s weekly inventory report.
With the sharp losses, U.S. crude futures fell below $ 30 a barrel for the first time since December, 2003. The front month contract for U.S. crude has slumped more than 10% since the first of the year, amid widespread economic concerns in China and heightened geopolitical instability in the Middle East.
On the Intercontinental Exchange (ICE), for March delivery wavered between $ 30.55 and $ 32.67 a barrel, before settling at 30.91, down 0.97 or 3.04% on the day.
The latest oil sell-off has led to mounting concerns that crude prices could fall even further in the short-term future. On Monday, analysts at several prominent firms lowered their yearly forecasts for oil prices in 2016, while Standard Chartered (L:L:) predicted that crude futures could fall as low as $ 10 a barrel. Analysts from Morgan Stanley (N:N:) also warned that stronger devaluations in the yuan could prevent crude prices from rebounding.
It came as speculators increased short positions of WTI crude by almost 10% from the previous week on January 5 to a record high of 182,562, according to data compiled by the U.S. Commodity Futures Trading Commission. At the same time, investors cut their long positions or bets that prices will spike to fewer than 50,000, the data showed.
Elsewhere, investors digested news of a suicide bombing in Istanbul on Tuesday morning, of which Turkey officials linked to a group represented by the Islamic State. At least eight German citizens were killed in the blast in a popular tourist area near the Blue Mosque, a Turkish government official told CNN. Energy prices are sensitive to reports of increased geopolitical tensions near the Middle East, home to roughly 30% of the world’s daily crude production.
NYMEX crude rebounds in Asia after China exports present a achieve
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