“Brent crude, headed for a fourth weekly advance, climbed to a nine-month high in London after stronger-than-expected trade data from China, the world’s second-biggest user.
Futures rose to more than $118 a barrel for the first time since May 3, boosting their premium to West Texas Intermediate for an eighth day to the most in almost two months. China’s exports climbed 25 percent in January from a year earlier and crude imports increased to the highest level in eight months, customs figures showed. Oil markets will “remain tight” in the first quarter and may push prices above its forecasts, Goldman Sachs Group Inc. said.
“The numbers out of China are good,” said Nic Brown, head of commodity research at Natixis SA in London, who forecasts that Brent will average $107.40 this year. “China appears to be significantly stronger than even we were expecting. This is a clear upside risk for oil prices.”
Brent for March settlement advanced as much as $1.17, or 1 percent, to $118.41 a barrel on the London-based ICE Futures Europe exchange and was at $118.26 at 11:51 a.m. local time. Volumes were 41 percent more than the 100-day average. The European benchmark grade’s premium to WTI futures widened to as much as $22.05, the most since Dec. 14.
Crude for March delivery on the New York Mercantile Exchange added 44 cents to $96.27 a barrel in electronic trading. The volume of all futures traded was in line with the 100-day average. Prices are down 1.5 percent this week, after advancing 14 percent over the prior eight weeks.
