Brent Reaches Above $106 on Chinese Data

Brent crude oil traded steadily at $106.08 at 9:21 GMT on Wednesday morning after positive Chinese data gave markets a boost. The commodity has been under pressure as many of the world's largest consumers weather financial problems and attempt to regain momentum after recessions. After several months of disappointing data, China released import and export data that rallied the markets and renewed optimism that the second largest oil consuming nation's recovery was back on track. According to CNBC, China's imports increased in March by 14.1 percent and exports grew 10 percent. The figures eased doubts from previous months' data which showed only lackluster growth. In contrast, crude imports slid 2.1 percent from last year, but the fall had little impact on Brent prices as it was anticipated. Though the data is providing temporary support for the commodity, some attribute the numbers to the restocking process in some industries. Moving forward, the growth could be inhibited by slowing global demand. Analysts are also predicting Brent will hit resistance at $106.60 and will fall back near $105. Geopolitical concerns are also propping up Brent prices as trouble in both North Korea and Iran add uncertainty to prices. North Korea has positioned one of its long range missles in readiness and South Korea has begun to prepare for a possible launch. At the moment, North's threats are being considered scare tactics, but many are starting to worry that the region is inching closer to a nuclear war. Iranian officials announced that operations at a milling plant and two uranium mines had begun. The announcement came after talks between Western diplomats and Iranian leaders failed to end in compromise over Tehran's disputed nuclear program. If no agreement is reached, many worry that the tension could boil over and interrupt crude supply.