OIL FUTURES: Crude Eases From 2-Year High After China Rate Hike

SINGAPORE (Dow Jones)--Nymex crude oil futures traded slightly lower Monday, easing from a two-year high in the previous session, after China\'s central bank raised its benchmark deposit and lending rates.



The move signaled that inflation in China has become a \"more serious matter,\" said Jonathan Barratt, managing director at Commodity Broking Services in Sydney. \"You will find that crude will come under pressure.\"



The rate hike likely damped expectations of rising energy demand from China, which surpassed the U.S. earlier this year as the world\'s top energy consumer.



\"We would urge caution on behalf of the bulls,\" analysts led by Stephen Schork said in a note to investors. \"China increasing its interest rates will likely have the effect of cutting down on lending and spending.\"



On the New York Mercantile Exchange, light, sweet crude futures for delivery in February traded at $91.43 a barrel at 0541 GMT, down $0.08 in the Globex electronic session. February Brent crude on London\'s ICE Futures exchange rose $0.43 to $94.20 a barrel.



Nymex crude, however, could weaken next year due to high supplies, according to analysts at JBC Energy.



In the first quarter of 2011, TransCanada Corp. (TRP) plans to extend a pipeline from refineries in the Midwest to the key storage hub in Cushing, Okla., they said.



\"The extension will boost the total capacity of the Keystone pipeline to 590,000 barrels a day and should result in more crude getting stored in and around Cushing,\" JBC analysts said in a note to subscribers.



Meanwhile, the Organization of Petroleum Exporting Countries isn\'t worried about oil prices rising above $90 a barrel as they are largely driven by seasonal forces, Qatar Oil Minister Abdullah bin Hamad Al Attiyah said last week.



\"OPEC still sees there is no need for another meeting until (June) and there are no complaints from consumers and producers.\"



Saudi Oil Minister Ali al-Naimi also reiterated that OPEC doesn\'t need to meet again before June.



\"We have already taken that decision (of not meeting before June) in Quito,\" Naimi told reporters in Cairo.



Nymex reformulated gasoline blendstock for January--the benchmark gasoline contract--fell 71 points to $2.4355 a gallon, while January heating oil traded at $2.5420, 12 points higher.



ICE gasoil for January changed hands at $783.25 a metric ton, up $4.25 from Friday\'s settlement.


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