Oil retreats after Chinese rate hike

Tuesday, 5 April 2011 05:55

Oil moved back from its highest level in more than 2 1/2 years after the rate hike in China could mean that demand may decline and crude slipped as much as 0.9 percent in New York.

Chinese oil demand grew 15 percent in January from the year before.

Oil for May delivery dropped 44 cents, or 0.4 percent, to $108.03 a barrel at 9:15 a.m. on the New York Mercantile Exchange. It traded as high as $108.78 a barrel yesterday, the highest price since Sept. 24, 2008.

Brent for May settlement rose 7 cents to $121.13 on London’s ICE Futures Europe exchange.

The contract climbed to $121.29 a barrel yesterday, the highest since Aug. 4, 2008. The European benchmark traded at a premium of $13.10 a barrel to U.S. West Texas Intermediate futures.