China demand concerns see Brent slip

Newly released data, which shows an increasing Chinese trade surplus caused by declining imports has caused fears of reduced demand and resulted in Brent crude slipping from its six month high.

China’s US$ 23.7 billion trade surplus for January confounded analysts by defying predictions and reaching its highest level for six months. Reports have shown that Chinese imports for January were 15.3% lower than the same month last year.

Significant losses, however, were halted by a 7.4% increase in oil imports reaching 5.5 million bpd, the third highest level recorded.

Some analysts have also pointed out that the data may well have been distorted by the Chinese New Year celebrations, pointing out that there is still a positive long-term outlook for Chinese oil demand.

Continuing fears over the Eurozone debt crisis, fuelled by doubts over the ability of the region to secure an agreement in the ongoing Greek debt talks, have also seen prices suffer.

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