© Reuters. NYMEX crude gains in Asia on rebound Investing.com – Crude oil gained in Asia on a rebound from overnight losses and as Chinese trade data showed a slower pace of import declines than expected.
On the New York Mercantile Exchange, WTI crude for January delivery rose 0.33% to $ 37.77 abarrel.
In China, key for November showed a 6.8% drop in exports, more than the 5.0% decline seen, and imports down 8.7%, less than the 12.6% drop expected, The overall surplus came in at $ 54.10 billion, compared to an expected $ 63.30 billion.
Earlier, in Japan, rose 2.3% as expected year-on-year in November, while the for October came in at a surplus of ¥1.458 trillion, slightly narrower than the expected ¥1.659 trillion surplus.
Also in Japan, third quarter surged 1.0% year-on-year compared to a 0.1% gain seen and rose 0.3% quarter-on-quarter compared to a 0.1% gain expected.
In Australia, the survey rose to 5 in November from 2 in the previous month, while the business survey rose to 10 from 9.
“This is basically another strong result for the NAB survey which, in conjunction with signs of improvement in the labor market, means we can put more faith in the building non-mining sector recovery,” NAB chief economist Alan Oster said.
Overnight, futures plunged below $ 38 a barrel falling to fresh six-year lows, in the first full day of trading since OPEC concluded a rancorous meeting by leaving its output ceiling unchanged amid divisiveness among members on the need for production cuts.
On the Intercontinental Exchange (ICE), for wavered between $ 40.60 and $ 43.22 a barrel, before closing at 40.73, down 2.26 or 5.26% on the day. At one point in U.S. afternoon trading, North Sea brent futures fell to its lowest level since March, 2009.
Meanwhile, the spread between the international and U.S. domestic benchmarks of crude stood at $ 3.03, slightly below Friday’s level of $ 3.04 at the close of trading.
Following a lengthy, contentious six-hour meeting on Friday, OPEC announced that it is leaving its output ceiling unchanged at 30 million barrels per day. Over the last year, OPEC production has lingered around record-highs at 31.5 million bpd, following a strategy by Saudi Arabia to ramp up output in an apparent effort to squeeze out higher-priced U.S. shale producers. As a result, crude prices have remained near multi-year lows throughout the calendar year amid a glut of oversupply.
OPEC leaders appear hesitant to alter their strategy until a bevy of economic sanctions against Iran are lifted against the Gulf state next year. When the sanctions are fully eased, Iran is expected to boost its production by as much as 1 million barrels per day.
“The future of OPEC is as strong as ever,” OPEC Secretary General Abdullah al-Badri said at a press conference following the meeting. “We have to accommodate Iran one way or the other. Also, production changes from time to time so we decided to postpone this decision to the next OPEC meeting.” OPEC is not expected to alter its output strategy until its meets again in Vienna next June.
The severe downturn in oil prices has weighed on smaller OPEC member states, such as Venezuela, Ecuador and Nigeria, whose economies are heavily reliant on oil proceeds. The countries, though, have met resistance from Saudi Arabia, which has an abundance of oil in reserves to absorb short-term losses. Last month, the International Energy Agency (IEA) estimated that OPEC’s annual revenue may dip to $ 550 billion from a five-year average of more than $ 1 trillion due to the decrease in crude prices.
NYMEX crude good points in Asia on rebound, China import figures assist
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