Dhaka, Bangladesh (BBN) – The week ended on Thursday with Brent crude settling above US$126 as expectations for a build in U.S. crude inventories offset improving economic sentiment in the world’s top oil consumer.
The week started with oil prices falling on concerns about slowing growth in China and recession in Italy, along with reduced fears of immediate supply disruption arising from tensions with Iran.
China posted its largest trade deficit in at least a decade, influencing worries about lower fuel demand in the world’s second largest economy.
China’s trade deficit raised questions about the global economy’s appetite for its goods and its energy demand growth.
During midweek, Brent crude prices settled at an 11-month high as improving German economic sentiment, rising U.S. retail sales and the U.S. central bank’s reiteration that it plans to keep interest rates low fuelled optimism about growth, according to a weekly market update.
The dispute between Iran and the West over Tehran’s nuclear program has helped send Brent prices up nearly 18 percent in 2012, and U.S. crude up by 8 percent, it added.
BBN/SSR/AD-17Mar12-6:40 pm (BST)
