* China’s March imports below forecast, seen weak for demand
* EIA cuts forecasts for 2012, 2013 oil demand growth
* Iran says cut exports to Spain, may halt to Germany, Italy
* Coming up: U.S. API oil stocks data at 4:30 p.m. EDT
(Recasts, updates prices, market activity)
By Robert Gibbons
NEW YORK, April 10 (Reuters) – Crude prices fell for a
second day o n Tuesday as soft Chinese import data added to
concerns about oil demand already sparked by a report last week
showing slower U.S. job creation in March.
“An important point of the trade numbers is the softer
overall import figure,” Ric Spooner, chief market analyst at CMC
Markets, said of the Chinese report. “That raises a question on
the country’s domestic activity and investment program and if
economic activity has been softer than anticipated.”
The revival of talks slated for Saturday among Iran and
major powers about Tehran’s nuclear program contributed to oil’s
pullback, though a report on Iran’s state television network
Press TV that Iran had cut oil exports to Spain and may halt
sales to Germany and Italy initially lifted oil off lows.
Brent crude’s premium to its U.S. counterpart
narrowed and the spread fell below $20 a barrel. Analysts said
Brent’s price premium would evaporate more if the nuclear talks
with Iran yielded results.
Adding to the pressure on the Brent/U.S. crude spread,
Goldman Sachs o n Tuesday forecast prices for U.S. benchmark West
Texas Intermediate would rise closer to those of Brent in the
second half of the year.
Brent May crude fell $2.40 to $120.27 a barrel by
12:23 p.m. EDT (1623 GMT), having dropped to $120.03 after
falling below the 50-day moving average of $121.84. Front-month
Brent was last below $120 intraday on Feb. 21.
The Brent May contract expires on Friday.
U.S. May crude lost $1.40 to $101.06 a barrel,
dropping as low as $100.75 intraday after pushing below the
100-day moving average of $101.65.
The International Monetary Fund added to the chorus on
slower growth, telling commodity exporters they should brace for
lower prices given weak global economic activity.
The U.S. Energy Information Administration cut its 2012
world oil demand growth forecast by 170,000 barrels per day in a
monthly report that also trimmed 2013 growth expectations and
raised the forecast for non-OPEC oil output.
Pressure from concerns about soft economic growth extended
beyond oil.
U.S. Treasury debt prices rose and pushed benchmark yields
below 2 percent for the first time in more than four weeks as
economic worries bolstered demand for safe-haven U.S. government
debt.
Major U.S. stock indexes fell 1 percent on Wall Street, with
the S&P; 500 down a fifth straight session and pushing below its
50-day moving average for the first time since Dec. 21.
FOCUS ON CHINA
China’s exports grew by 8.9 percent year-on-year in March,
compared with a consensus call for 7.2 percent, but
below-forecast growth in imports pointed to tepid first-quarter
domestic demand.
China’s March crude imports eased from the previous month’s
record. But the volume rose 8.7 percent on the year to 5.55
million bpd, the third highest ever, data showed.
Chinese oil companies are expected to trim crude oil
throughput at major refineries to a 35-month low in April after
a large cut in March, a Reuters poll on Monday showed,
suggesting China has been stockpiling.
(Additional reporting by Gene Ramos in New York, Ikuko Kurahone
in London and Manash Goswami in Singapore; Editing by Dale
Hudson and Alden Bentley)
