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Oil steady near $98 after China economy jitters

Published on NewsOK Modified: March 13, 2014 at 9:12 am •  Published: March 13, 2014

The price of oil was steady near $98 a barrel on Thursday after plunging the day before on concerns that China's economic slowdown is deepening.

By mid-afternoon Europe, benchmark U.S. crude for April delivery was down 10 cents to $97.89 a barrel in electronic trading on the New York Mercantile Exchange. On Wednesday, the Nymex contract fell $2.04 to close at $97.99, its first close below $100 in a month.

Brent crude, used to set prices for international varieties of crude, was down 21 cents to $107.81 on the ICE Futures exchange in London.

Data showing a decline in Chinese exports in February fueled worries that the world's second-largest economy is weakening further. Growth in factory output, investment and retail sales, reported Thursday, was unusually weak.

Also weighing on prices was the eighth consecutive week of rising U.S. stocks of crude oil, which increased by 6.2 million barrels last week, the Energy Information Administration said Wednesday. That contrasted with analysts' expectations of a rise of 2.3 million barrels.

Meanwhile, the Department of Energy surprised markets with the announcement of the sale of up to 5 million barrels of crude oil for April delivery from the Strategic Petroleum Reserve system "in order to appropriately assess the system's capabilities in the event of a disruption."

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