* China’s export, import growth may have slowed in March
* U.S. crude inventories seen rising further due to imports
* Brent to end rebound below $123.54 – technicals
* Coming Up: U.S. API weekly crude stocks; 2030 GMT
By Manash Goswami
SINGAPORE, April 10 (Reuters) – Brent crude futures held
steady above $122 on Tuesday as investors awaited data out of
China to gauge the economic health of the world’s second-biggest
oil consumer.
Investors are watching for signs that show China can dodge a
hard landing as it tweaks monetary and fiscal policies to rein
in rising costs and help small businesses hit by a global
downturn. China’s trade numbers scheduled for release later in
the day may show if the revival in the United States has boosted
Chinese exports to America.
Front-month Brent crude was unchanged at $122.67 a
barrel by 0141 GMT, after settling 76 cents lower. The contract
slipped as low as $121.02 on Monday, the lowest since March 15.
U.S. oil gained 10 cents to $102.56, after settling 85
cents lower at $102.46.
“Today’s data will give further evidence to show how much of
a slowdown the Chinese economy is experiencing,” said Ben Le
Brun, a market analyst at OptionsXpress in Sydney. “Prices have
fallen very close to their support levels and the series of data
due this week from China and elsewhere will pave the direction.”
The European benchmark may trade between $120 and $125 a
barrel and U.S. crude in a $100-$105 range as participants await
details on China’s gross domestic product, industrial output and
U.S. consumer prices due later this week to gauge the demand
growth outlook in the world’s two top economies.
China is expected to report first-quarter growth of 8.3
percent on-year, according to a Reuters poll. That would compare
with an 8.9 percent growth in the last quarter of 2011 and be
the slowest in nearly three years, but still comfortably above
China’s target of 7.5 percent growth this year.
Oil futures are also under pressure on expectations of a
further increase in U.S. commercial crude inventories, building
on the biggest two-week increase in more than a decade, as
higher imports easily outpaced sluggish refinery demand.
Industry group American Petroleum Institute (API) is due to
release its numbers later in the day.
Brent is expected to end its current rebound below the April
5 high of $123.54 per barrel and revisit Monday’s low of
$121.02, while U.S. oil may edge up to $103.40 per barrel, an
hourly chart high touched on April 5, according to Reuters
technical analyst Wang Tao.
(Editing by Himani Sarkar)
