Crude Oil Ends Higher On China Expectations, Pushing $52 A Barrel

(RTTNews) - U.S. crude oil moved up for a third straight session to end higher Monday, on expectations of increased demand from China, even as the dollar continued to strengthen against some major currencies.

Markets are betting that a recent series of disappointing economic news from China will compel Beijing to announce stimulus measures in the near future.

China's exports logged an unexpected double-digit decline in March and imports fell more than expected, weighing on the outlook for economic growth in the first quarter. As a result, China's trade surplus in March plummeted.

Tensions in the Middle East between major oil producers Saudi Arabia and Iran have also spurred oil prices, with concerns of a supply glut from Iranian oil flooding the market in the near term continued to ease.

Light Sweet Crude Oil futures for May delivery, the most actively traded contract, gained $0.27 or 0.5 percent to settle at $51.91 a barrel on the New York Mercantile Exchange Monday.

Crude prices for May delivery scaled a high of $53.10 a barrel intraday and a low of $51.47.

On Friday, crude oil gained $0.85 or 1.7 percent to settle at $51.64 a barrel, as concerns over Iranian oil flooding the already oversupplied market in the near term eased and with the dollar trading higher.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 99.53 on Monday, up from its previous close of 99.36 on Friday in late North American trade. The dollar scaled a high of 99.99 intraday and a low of 99.23.

The euro trended lower against the dollar at $1.0564 on Monday, as compared to its previous close of $1.0602 in North American trade late Friday. The euro scaled a high of $1.0621 intraday and a low of $1.0522.

On the economic front, China's exports logged an unexpected double-digit decline in March and imports fell more than expected, weighing on the outlook for economic growth in the first quarter. Exports decreased 14.6 percent in March from last year, data from the General Administration of Customs showed Monday. Shipments were expected to grow 9 percent. Suggesting weak domestic demand, imports dropped 12.3 percent, faster than an expected fall of 10 percent.

China's trade surplus fell sharply to $3.1 billion, below February's surplus of $60.6 billion and a $40.1 billion forecast by economists. Foreign trade slid 13.5 percent on a yearly basis.

Meanwhile, the World Bank has predicted China's economic growth to slow to 7.1 percent in 2015 from 7.4 percent projected earlier. In 2017, China's economy is expected drop to 6.9 percent while it addresses financial vulnerabilities and achieve sustainable growth. Economic growth in East Asia-Pacific region is expected to slow to 6.7 percent in 2015 from 6.9 percent in 2014

France's current account deficit in February increased from the previous month, as the visible trade shortfall widened due to the reduction in the growth of international trade, figures from Bank of France showed Monday.

The seasonally adjusted current account deficit rose to EUR 1.8 billion in February from EUR 0.2 billion in January. The goods trade surplus increased to EUR 2.9 billion from EUR 2.3 billion a month ago.