Oil up in Asian trade on Chinese trade data

Light sweet crude for delivery in February gained 41 cents while Brent North Sea crude for February rose 16 cents

I / Singapore January 10, 2013, 10:09 IST

Oil prices climbed in Asian trade today after a surge in China's trade surplus sparked hopes the world's second largest economy and biggest energy user was firing up again.

The trade figures are the latest in a string of data in recent months that indicate China has finally turned a corner after seven straight months of slowing growth, analysts said.

New York's main contract, light sweet crude for delivery in February, gained 41 cents to $93.51 a barrel in morning trade and Brent North Sea crude for February rose 16 cents to $111.92.

"After losing altitude last year, Asia's economic engine, led by China, has fired up again," global banking giant HSBC said in a market commentary.

China's trade surplus soared 48.1% to $231.1 billion in 2012, though total trade volume grew at a much slower pace in the face of economic weakness at home and abroad, official data showed today.

The country's exports rose 7.9% to $2.05 trillion from the year before, while imports increased 4.3% to $1.82 trillion, the national customs bureau said.

China's trade volume, or the total of exports and imports, grew 6.2% in 2012, well below the government target of about 10%.

"We are seeing assets pick up across the board... After encouraging data with better-than-expected trade numbers from China," said Jason Hughes, the head of premium client management at IG Markets in Singapore.

A rally in US equities, boosted by better-than-expected earnings of aluminum giant Alcoa, also supported oil prices, said Victor Shum, managing director of energy consultancy IHS Purvin and Gertz.