Crude oil dips on Libyan prospects, weak China data
Oil prices dipped Thursday, weighed down by signs some Libyan crude exports will resume soon and weak trade data in China, the world's second-biggest oil consumer.
US benchmark West Texas Intermediate for May delivery declined 20 cents to finish at $103.40 a barrel on the New York Mercantile Exchange.
Brent North Sea crude for May dropped 52 cents to stand at $107.46 a barrel in London.
Oil gave back some recent gains "on further indications that Libya is resuming exports from the Hariga oil terminal after a deal reached earlier this week," said Tim Evans of Citi Futures.
Libya's National Oil Co. lifted its force majeure notice from its Al-Hariga oil terminal in eastern Libya as of 1000 GMT Thursday, signaling a resumption of exports that could begin as soon as Sunday.
The shift at Al-Hariga follows a weekend deal between the central government and rebels who sized four key terminals as part of a push to gain political autonomy for the eastern Cyrenaica region.
The Zuetina oil port is also expected to resume deliveries soon, while the other two ports are expected to resume deliveries within two to four weeks, provided negotiations are successfully concluded.
Despite the progress on Al-Hariga, the outlook for a full resumption of Libyan oil remains "cautious," in part because earlier signs of a breakthrough have proven misleading, said Matt Smith, analyst at Schneider Electric.
March trade data from China released earlier in the day came in worse than analysts expected, also pressuring crude oil futures.
Chinese imports slumped 11.3 percent from a year ago and exports fell 6.6 percent.
The figures are potentially another cause for concern about the economy, which has shown signs of weakness recently with a string of disappointing indicators on trade, industrial output and consumer spending
"The weak exports highlighted a possible further contraction in the nation's manufacturing sector... thereby trimming demand prospects for crude oil," said Tan Chee Tat, investment analyst at Phillip Futures.
According to Commerzbank, China imported 5.54 million barrels of crude oil per day in March, a decline of 8.0 percent from February and the weakest import volume in five months.
