Oil prices edge higher after Chinese data

14th June 2011, Comments 0 comments

Oil prices rose slightly on Tuesday as the market digested news of an inflation spike in China, the world's biggest consumer of energy.

Brent North Sea crude for delivery in July edged up six cents $119.16 in early London trade.

New York's main contract, light sweet crude for July, climbed 26 cents to $97.56 a barrel.

Chinese data released Tuesday showed the consumer price index of the world's biggest energy consumer rising to near three year highs at 5.5 percent last month from a year earlier.

Although it was in line with expectations the rate was China's highest since July 2008, defying persistent official efforts to tame food and property costs.

The data is likely to fuel expectations for further monetary tightening in the coming days as authorities -- anxious about inflation's potential to spark social unrest -- try to stem a flood of credit in the economy.

© 2011 AFP

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