Brent oil prices rose slightly on Monday after Chinese data showed oil imports increased last month, a sign of robust demand for commodities in the world's No 2 oil consuming country. Chinese customs data showed imports rose to 5.69 million barrels per day last month, which tried for the third-highest monthly level ever and was up 3 percent from a year-earlier figures. Iron ore imports also rose, and China's oil refinery runs reached a record last month above 10.1 million barrels a day.
The data helped boost expectations for steady global demand among oil traders. Brent crude's gains ended a five-day slide for the global benchmark, while US crude futures fell slightly in afternoon trading, after being higher most of the day, as forecasts showed unseasonably warm weather that could limit demand for fuel. "The (Chinese) figures are another confirmation that Chinese oil demand is accelerating again, and there are good reasons to expect that it will carry on growing strongly next year," said Carsten Fritsch, senior oil analyst at Commerzbank in Frankfurt.
Optimism about Chinese growth was tempered by customs data released there on Monday that showed the country's exports expanded less rapidly than expected last month. Brent for January delivery rose 31 cents to settle at $107.33 per barrel, while US-traded West Texas Intermediate fell 37 cents to $85.56 per barrel, posting a fifth day of losses. The divergence widened the spread between the European and US benchmarks to around $21.70 a barrel, from as narrow as$20.45 last week.
Meteorologists forecast mild US weather over the next week, particularly for the eastern half of the country, potentially curbing demand for heating. "With the warm (US) weather ... you can see heating oil and natural gas futures both lower today," said John Kilduff of hedge fund Again Capital in New York. China's oil refinery throughput rose in November by 9.1 percent from the same month of 2011. But while increased imports and refining boded well for China's domestic economy, the country's export growth slowed to a lower-than-expected 2.9 percent in November, a customs report said on Monday.
Also, on oil traders' radar, US Federal Reserve policymakers start a two-day policy meeting on Tuesday against the backdrop of US budget negotiations, with many economists expecting the Fed to announce a fresh round of bond purchases to stimulate the economy in 2013. International benchmark Brent oil would need to end the month above $107.38 per barrel to post a gain for 2012. Oil investors also await comments on supply outlook from the Organisation of the Petroleum Exporting Countries meeting on Wednesday.
The producer group is not widely expected to cut its output target of 30 million bpd, in place since 2011. Despite relatively high global oil stockpiles and slowing demand growth, Brent prices have remained over $100 a barrel, partly due to political tensions in the Middle East and the threat of supply disruptions. Oil traders said Brent also retreated from Monday's high - of $108.54 per barrel - after ExxonMobil lifted a force majeure on loadings of Qua Iboe crude from Nigeria following export delays caused by earlier flooding.
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