Oil prices fall after a decline in Chinese imports

Monday, Jul 11, 2011

Oil prices have fallen after figures showed a drop in Chinese oil imports and as worries persist about the US economy's strength.

US light crude was down $1.33 to $94.87 a barrel, while Brent crude was 87 cents lower at $117.46.

The falls came after it was revealed that China's crude imports fell to an eight-month low in June. They were 11.5% lower than a year earlier.

On Friday, the latest US jobs figures were far weaker than expected.

Only 18,000 new jobs were created in June, way below expectations of a 90,000 rise, while the unemployment rate to 9.2% from 9.1% in May.

"It's a combination of both pieces of news, the world's two biggest consumers with not good economic data," said Ben Le Brun, market analyst with CMC Markets.

The Chinese government has been raising interest rates to try to reduce the speed of the country's rapid economic growth.

Analysts said concern about the continuing debt crisis in the eurozone was also weighing on oil prices, as buyers fear it may weaken demand for fuel in countries such as Greece and Portugal.

Source: BBC