“Black Stuff” Jumps to 3-month High After China Exports

Oil rose to the highest level in three months in New York as exports from China, the world’s second-largest fuel consumer, accelerated in December.

Prices advanced as much as 1.7 percent after China’s customs agency reported overseas sales jumped 14.1 percent last month from a year earlier, exceeding the 5 percent median forecast in a Bloomberg survey. Saudi Arabia reduced oil production in December to a 19-month low, according to a Gulf official with knowledge of the kingdom’s energy policy.

“Oil is rising because of the good news from China, the growing exports,” said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts. “It definitely gives a bullish flavor to the market. The Saudi Arabia news will reinforce the bullish mood.”

Crude oil for February delivery gained $1.04, or 1.1 percent, to $94.14 a barrel at 9:36 a.m. on the New York Mercantile Exchange after climbing to $94.70, the highest intraday level since Sept. 19. Trading volume was more than double the 100-day average.

Brent oil for February settlement increased 88 cents, or 0.8 percent, to $112.64 a barrel on the London-based ICE Futures Europe exchange. Volume was 90 percent above the 100-day average.

China’s December trade surplus almost doubled from a year earlier to $31.6 billion, according to the Beijing-based General Administration of Customs. China’s exports rose 7.9 percent for all of 2012.


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell