Investing.com - Crude oil futures rallied sharply on Monday, as disappointing Chinese trade data added to speculation that policymakers in Beijing may implement further stimulus measures.
On the ICE Futures Exchange in London, Brent oil for June delivery jumped $1.19, or 2.02%, to trade at $60.14 a barrel during European morning hours. On Friday, London-traded Brent prices rose $1.26, or 2.18%, to settle at $58.95.
Elsewhere, on the New York Mercantile Exchange, crude oil for May delivery tacked on $1.15, or 2.23%, to trade at $52.79 a barrel. Nymex oil advanced 85 cents, or 1.67%, on Friday to close at $51.64.
China reported a trade surplus of $3.08 billion in March, compared to expectations for a surplus of $45.4 billion and down from a surplus of $60.6 in February.
Exports tumbled 15.0% from a year earlier last month, disappointing expectations for a 12.0% increase, while imports sank 12.7%, worse than forecasts for a decline of 11.7%.
The slide in imports pointed to persistent weakness in the economy, fuelling speculation policymakers will do more to boost growth.
China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.
Meanwhile, the spread between the Brent and the WTI crude contracts stood at $7.35 a barrel, compared to $7.31 by close of trade on Friday.
Oil prices have been well-supported in recent sessions amid speculation an ongoing collapse in rigs drilling for oil in the U.S. will result in lower production.
Industry research group Baker Hughes (NYSE:BHI) said Friday that the number of rigs drilling for oil in the U.S. fell by 42 last week to 760. It was the 18th straight week of declines and the largest drop in a month.
Market players have been paying close attention to the shrinking rig count in recent months for signs it will eventually reduce the glut of crude flowing into the market.
Elsewhere, the U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.35% to trade at 99.98 early on Monday.
Market players will be looking ahead to Tuesday’s report on U.S. retail sales, as well as Friday’s reports on inflation and consumer sentiment, for further indications on the strength of the economy and the timing of an interest rate hike.