'%20id='ico-down'%20stroke='%23000000'%20stroke-width='1.5'%3e%3cg%20transform='translate(1092.250000,%20254.750000)'%3e%3cpolyline%20id='Path-2-Copy-4'%20transform='translate(5.500000,%202.750000)%20scale(1,%20-1)%20rotate(-180.000000)%20translate(-5.500000,%20-2.750000)%20'%20points='0%200%205.5%205.5%2011%200'%3e%3c/polyline%3e%3c/g%3e%3c/g%3e%3c/g%3e%3c/svg%3e){kind=small}
Global oil prices fell on Monday as Chinese industrial production showed signs of a slowdown in the world’s biggest energy-consuming nation, analysts said.
The oil market was pulled lower also by the firmer dollar, which makes greenback-priced crude more expensive for buyers using weaker currencies.
In early afternoon London deals, Brent North Sea crude for delivery in April dropped 66 cents to $110.19 a barrel.
New York’s main contract, West Texas Intermediate (WTI) light sweet crude for April, shed seven cents to $91.88 a barrel.
“Oil prices are starting the new week of trading down,” said Commerzbank analyst Carsten Fritsch.
“Rather than benefiting… from the positive US labour market data and the resulting rosier demand prospects in the worlds largest oil consumer, oil prices are under pressure from a firmer US dollar and speculation about a premature end to the Feds bond purchasing programme.
“In addition, the majority of the Chinese economic figures published at the weekend proved disappointing. This illustrates how market players are currently focusing on negative information and the poor market sentiment.”
Official data released Saturday showed inflation in China hitting a 10-month high in February.
Industrial output, which reflects production at China’s factories, workshops and mines, rose 9.9 percent year-on-year over the first two months of 2013, compared with 11.4 percent in the same period of 2012.
“Chinese data showing industrial production slowing has taken a toll on oil prices,” added Jason Hughes, head of premium client management at IG Markets Singapore.
Victor Shum, managing director at IHS Purvin and Gertz in Singapore, agreed meanwhile that the pick-up in the greenback was hitting prices.
“A booming oil supply, in combination with the strengthening of the dollar after a strong US jobs report last week, has caused some selling,” he said.
The US Labor Department on Friday reported that the unemployment rate fell to 7.7 percent in February from 7.9 percent in January, and the country gained a better-than-expected net 236,000 jobs last month, raising hopes that the economy is strengthening.
burs-rfj/bcp/wai