Tuesday, March 05 08:01:52
Brent crude futures rose towards $111 per barrel today, bucking a five-day losing streak on bargain buying after China pledged to keep its economy growing at 7.5 percent.
Gains were modest as investors eyed a raft of medium-term concerns, including rising supplies, a fiscal crisis in the United States and the continuing crisis in the euro zone.
Front-month Brent crude futures rose 45 cents to $110.54 per barrel at 0536 GMT, while U.S. crude added 27 cents to $90.39.
Brent tested its 2013 low in the previous session, dropping as low as $109.58, the lowest since Jan. 17. U.S. crude hit its lowest since Dec. 26 at $89.33 per barrel.
"I would call this move in the oil markets as bargain hunting rather than any change in the outlook," said Ker Chung Yang, senior investment analyst at Phillip Futures in Singapore.
"But China is showing some signs of confidence which has resulted in the rebound today."
China will boost fiscal spending this year to deliver economic growth at 7.5 percent, outgoing premier Wen Jiabao said on Tuesday ahead of the country's annual parliamentary meetings.
The statement countered concerns about demand in the world's No. 2 oil market after purchasing manager surveys over the weekend suggested growth in China's key manufacturing and service sectors may be slowing. Reuters