China Interest Rates Will Rise, Falls Asia Oil

March 25, 2010

Crude oil prices fell in Asian trade on Friday (28 / 1) due to investor concerns that the estimated China will raise interest rates. China is the world’s biggest energy consumer. Citing AFP,’s main contract, light sweet crude in New York for delivery in March, down 49 cents to $ 85.15 per barrel. Brent North Sea crude oil for March fell two cents to $ 97.37.

China Interest Rates Will Rise, Falls Asia OilReports that Saudi Arabia is pumping more oil sentiment also soaking. “Another factor that could make investors worry is that estimates China will take additional tightening measures during the Lunar New Year,” said Ong Yi Ling, an analyst with investment of Phillip Futures in Singapore.

State media reported that interest rates could be raised again at around the Lunar New Year next month to combat rising inflation during the first half of 2011.

Crude oil prices have been influenced by several factors in the last session as the U.S. poverty data showing a higher jobless claims and durable goods orders are disappointing, the decline in Japan’s debt rating and the rising U.S. energy stockpiles.

Standard & Poor’s on Thursday cut the credit ratings of Japan for the first time since 2002, accused the government of lack of “coherent strategy” in an effort to alleviate the highest debt of any industrialized country. On Wednesday, U.S. data also showed an unexpected rise in U.S. stockpiles of crude oil inventories, indicating slower demand. U.S. crude oil inventories rose 4.8 million barrels in the week ended January 21 compared with analyst expectations of a rise by 900,000 barrels.

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