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Crude falls on Chinese economic growth data

Published 04/13/2012, 01:58 PM
Updated 04/13/2012, 01:59 PM
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Investing.com - Crude oil futures fell in U.S. trading Friday on news the Chinese economy grew less than expected in the first quarter.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in May traded at USD102.95 a barrel, down 0.66%, off from a session high of 103.89 and up from an earlier session low of USD102.61.

In China, the country's gross domestic product grew 8.1% in the first quarter, below expectations for 8.3% growth and well beneath the fourth quarter's 8.9% expansion.

The numbers sent crude falling on sentiment that the rising economic powerhouse will need less crude and derivatives to fuel its growth.

Concerns the debt crisis is reheating in Europe also sent crude falling, while comments out of Saudi Arabia that the Kingdom wants to see lower prices pressured the commodity downward as well.

"We are seeing a prolonged period of high oil prices," Oil Minister Ali al-Naimi said in a statement according to Reuters.

"We are not happy about it. (The Kingdom of Saudi Arabia) is determined to see a lower price and is working towards that goal."

In the U.S., meanwhile, higher gasoline prices may be slowing consumer spending to the point that the economy could suffer.

The Thomson Reuters/University of Michigan's consumer sentiment index fell to 75.7 for April from 76.2 in March, mainly due to fears that high gasoline prices will eat into household purse strings

Oil saw some resistance ahead of a meeting between Iran and six global powers to ease a standoff with the West.

Accusations from the West that Iran is building a nuclear weapons program have escalated into sanctions that have already curtailed oil exports from the country.

Delegates from the U.S., the U.K., France, Germany, Russia and China are set to meet with Iranian representatives in Turkey to find a way out of the standoff.

On the ICE Futures Exchange, Brent oil futures for June delivery were down 0.33% and trading at USD121.11 a barrel, up USD18.16 from its U.S. counterpart.






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