Oil price nears $106 per barrel and China positive market trade helped boost the price of oil on Thursday. The Oil price rose up more than 2 percent Friday as positive economic news from China outweighed expectations that the U.S. Federal Reserve would soon start withdrawing its bond-buying program.
China’s exports and imports both increased last month, beating expectations and representing a strong recovery from June’s slump. That suggested growth in the world’s No. 2 economy might eventually pick up following months of sluggishness.
The official Xinhua News Agency said retail sales grew 13.2 percent in July from a year earlier, slightly down from June. Industrial production grew 9.7 percent, up from June’s 8.9 percent and the highest year-on-year growth in five months.
The September natural gas contract increased 5¢ to close at a rounded $3.30/MMbtu on NYMEX. On the US spot market, gas at Henry Hub, La., lost about 3¢ to $3.27/MMbtu.
In London, the September IPE contract for North Sea Brent declined 76¢ to $106.68/bbl. Gas oil for August was down $10 to $896/tonne Oril and Gas reported.
US oil output grew by the most on record last year. Yet Saudi Arabia is producing almost 10m barrels a day, an extremely high figure by historical standards. And oil prices remain high.