BS: Oil Fluctuates as China’s Imports Gain, Banks Increase Reserves
By Mark Shenk
Dec. 10 (Bloomberg) -- Crude oil fluctuated as Chinese imports surged and the country took steps to slow growth and stem inflation.
Prices climbed as much as 0.7 after China said November crude imports jumped 26 percent and the International Energy Agency raised its 2011 oil-demand forecast for a third month. Futures came off their highs after China’s central bank said it will raise the amount the nation’s lenders must hold as reserves starting Dec. 20.
“The bullish headlines were undercut by worries about Chinese economic policy as the country tries to control inflation,” said Bill O’Grady, chief market strategist at Confluence Investment Management in St. Louis.
Crude oil for January delivery declined 17 cents to $88.20 a barrel at 9:14 a.m. on the New York Mercantile Exchange. The contract was down 1.1 percent this week.
Brent crude oil for January settlement rose 28 cents, or 0.3 percent, to $91.27 a barrel on the ICE Futures Europe exchange in London.
The International Energy Agency raised its 2011 global crude-oil demand forecast, citing consumption gains in North America and China. Crude use worldwide will average 88.8 million barrels a day next year, about 260,000 barrels more than its previous forecast, the Paris-based adviser said today in its monthly Oil Market Report.
--Editors: Joe Link, Charlotte Porter
To contact the reporter on this story: Mark Shenk in New York at mshenk1@bloomberg.net
To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net
