Oil advances in line with equities

AFP, LONDON:  Oil prices rose yesterday, extending recent bumper gains in line with rising global stock markets, and despite poor Chinese and Japanese economic data, traders said.
US benchmark West Texas Intermediate for March delivery climbed 57 cents to $33.01 per barrel from Friday’s closing level.
Brent North Sea crude for delivery in April advanced 36 cents to $33.72 a barrel in midday London trade.
“After surging higher at the end of last week, crude oil prices have started the new week on the front foot,” said City Index analyst Fawad Razaqzada.
“Oil and other traders have completely shrugged off the weaker Chinese trade and Japanese GDP figures that were published overnight.”
European stock markets rallied sharply yesterday, building on Asian gains after Shanghai avoided a sharp sell off on its return from holidays.
Tokyo stocks soared more than seven per cent yesterday, as news of a fourth-quarter economic contraction fanned hopes for more stimulus measures.
“With Japan’s Nikkei closing up more than seven per cent  higher and European stocks also coming back strong, the market either expects to see more Bank of Japan monetary stimuli and/or is more hopeful that oil prices have bottomed out,” added Razaqzada.
Japan’s economy shrank 0.4 per cent in the October-December quarter—an annualised 1.4 per cent —the Cabinet Office said yesterday, dealing another blow to Prime Minister Shinzo Abe’s attempts to kickstart growth and ramp up inflation. For the whole of last year growth in the world’s number three economy was a measly 0.4 per cent.
Shanghai stocks meanwhile nursed modest losses that were capped by stimulus hopes in the wake of the disappointing trade numbers.
Shanghai ended 0.6 per cent off. However, the losses were limited considering traders were playing catch-up with last week’s bloodbath across world markets and after data showed exports tumbled 11.2 per cent year-on-year in dollar terms and imports plunged 18.8 per cent.
In earlier yesterday trade, crude oil prices had fallen as Iran prepared to ship its first consignment of the commodity
since sanctions were lifted, reigniting worries over a global supply glut.

Oil advances in line with equities

AFP, LONDON: Oil prices rose yesterday, extending recent bumper gains in line with rising global stock markets, and despite poor Chinese and Japanese economic data, traders said. US benchmark West Texas Intermediate for March delivery climbed 57 cents to $33.01 per barrel from Fridays closing level. Brent North Sea crude for delivery in April advanced 36 cents to $33.72 a barrel in midday London trade. After surging higher at the end of last week, crude oil prices have started the new week on the front foot, said City Index analyst Fawad Razaqzada. Oil and other traders have completely shrugged off the weaker Chinese trade and Japanese GDP figures that were published overnight. European stock markets rallied sharply yesterday, building on Asian gains after Shanghai avoided a sharp sell off on its return from holidays. Tokyo stocks soared more than seven per cent yesterday, as news of a fourth-quarter economic contraction fanned hopes for more stimulus measures. With Japans Nikkei closing up more than seven per cent higher and European stocks also coming back strong, the market either expects to see more Bank of Japan monetary stimuli and/or is more hopeful that oil prices have bottomed out, added Razaqzada. Japans economy shrank 0.4 per cent in the October-December quarteran annualised 1.4 per cent the Cabinet Office said yesterday, dealing another blow to Prime Minister Shinzo Abes attempts to kickstart growth and ramp up inflation. For the whole of last year growth in the worlds number three economy was a measly 0.4 per cent. Shanghai stocks meanwhile nursed modest losses that were capped by stimulus hopes in the wake of the disappointing trade numbers. Shanghai ended 0.6 per cent off. However, the losses were limited considering traders were playing catch-up with last weeks bloodbath across world markets and after data showed exports tumbled 11.2 per cent year-on-year in dollar terms and imports plunged 18.8 per cent. In earlier yesterday trade, crude oil prices had fallen as Iran prepared to ship its first consignment of the commodity since sanctions were lifted, reigniting worries over a global supply glut.