Crude erases gains on improving U.S., Chinese trade data

Investing.com - Improving trade balances in the U.S. and China fueled hopes the global economy may be on the mend and will demand more fuels and energy going forward, sending oil prices rising on Friday.

Rising tensions in the Middle East bolstered prices as well, though profit takers sent the commodity back into negative territory in afternoon trading.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in March traded at USD95.63 a barrel on Friday, down 0.21%, off from a session high of USD96.56 and up from an earlier session low of USD95.30.

Solid trade figures and tensions in Iran sent oil prices gaining to levels ripe for a brief spat of profit taking on Friday.

The U.S. Commerce Department reported earlier that U.S. trade deficit in December narrowed to USD38.5 billion from a USD48.6 billion deficit in November.

Analysts were expecting the trade deficit to only narrow to USD46 billion.
Meanwhile in Asia, the Chinese trade surplus fell in January from December thanks to a surge in imports, fueling talk of an improving global economy.

The country's trade surplus hit USD29.20 billion last month, down from a USD31.60 billion surplus reported in December.

Analysts were expecting a USD22 billion surplus.

Meanwhile in Iran, the country's supreme leader, Ayatollah Ali Khamenei, rejected calls from the United States to hold face-to-face talks to end an ongoing nuclear standoff.

The West accuses Iran of developing a nuclear weapons program, a charge Tehran denies.

In the past, Iran has threatened to close the Strait of Hormuz, a narrow waterway connecting oil-rich Persian Gulf countries with the rest of the world.

Elsewhere on the ICE Futures Exchange, Brent oil futures for March delivery were up 1.22% at USD118.67 a barrel, up USD23.04 from its U.S. counterpart.