Oil dips on strong dollar, weak Chinese trade data

By Karolin Schaps

LONDON (Reuters) - Oil prices dipped on Monday on a firmer dollar and weaker-than-expected Chinese trade data that fuelled concerns about demand in the world's biggest energy consumer.

Brent crude futures, the global benchmark, were down 14 cents at $32.22 a barrel at 0948 GMT. U.S. futures traded at $29.40 a barrel, almost flat on Friday's close. Trade is likely to be thinner than usual on Monday due to the U.S. Presidents Day holiday.

Still, oil prices retained most of the gains made on Friday when they surged as much as 12 percent after speculation that OPEC might finally agree to cut production to reduce the worldwide supply glut.

"Oil is down on the stronger dollar and disappointing Chinese export/import figures," said Tamas Varga, oil analyst at London brokerage PVM Oil Associates.

Against a basket of currencies, the dollar was up 0.4 percent, having been at its lowest in almost four months. A stronger dollar makes dollar-traded oil contracts it less attractive.

Chinese exports fell 11.2 percent in January from a year earlier and imports tumbled 18.8 percent, government data showed on Monday, both far worse than expected. China's crude imports dropped 20 percent from a record high the previous month.

Concerns about a slowing Chinese economy as well as a glut of oil have been factors in oil prices trading at the lowest in more than a decade.

The mood inside OPEC is shifting from mistrust to a growing consensus that a decision must be reached on how to end the global oil price rout, Nigeria's oil minister said, adding he will have talks with his Saudi and Qatari counterparts.

But many analysts, including the International Energy Agency, are sceptical OPEC will cut a deal with other producers to reign in ballooning output.

"We continue to believe that if prices were to be artificially supported with production cuts; it would only give more expensive forms of production more room to breathe and would only solve the problem in the short term," Phillip Futures said in a note.

Iran is exporting 1.3 million barrels per day (bpd) of crude oil, and will be pumping 1.5 million bpd by the start of the next Iranian year on March 20, a vice-president was quoted as saying on Saturday.

Iran will load 4 million barrels of crude oil on tankers destined for Europe in the coming 24 hours, a senior official was quoted as saying.

(Additional reporting by Osamu Tsukimori in Tokyo; editing by Susan Thomas)