Oil down in Asia on Chinese data, stronger dollar

Oil prices were down in Asia today as Chinese industrial production showed signs of a slowdown, with the strong US dollar also putting pressure on prices, analysts said.

New York's main contract, light sweet crude for delivery in April eased 26 cents to $91.69 a barrel and Brent North Sea crude for April dipped 41 cents to $110.42 in late morning Asian trade.

Official data released on Saturday showed inflation in China hitting a 10-month high in February. Industrial output, which reflects production at China's factories, workshops and mines, rose 9.9 per cent year-on-year over the first two months of 2013, compared with 11.4% in the same period of 2012.

"Chinese data showing industrial production slowing has taken a toll on oil prices," said Jason Hughes, head of premium client management at IG Markets Singapore.

Chinese energy demand has a major impact on oil futures prices.

Victor Shum, managing director at IHS Purvin and Gertz in Singapore, added that the pick-up in the greenback was also hitting prices.

"A booming oil supply, in combination with the strengthening of the dollar after a strong US jobs report last week, has caused some selling," he said.

The US Labor Department on Friday reported that the unemployment rate fell to 7.7% in February from 7.9% in January, and the country gained a better-than- expected net 236,000 jobs last month, raising hopes that the economy is strengthening.