Housing, labour data provide upbeat signs on U.S. economy
SINGAPORE, Jan 18 (Reuters) - Brent crude held above $111 per barrel on Friday, supported by a rebound in Chinas growth and encouraging data from the United States, following a steep jump in the previous session triggered partly by an Algerian crisis.
The optimism over the China and U.S. data, as well as supply concerns after a seizure by Islamic militants of a gas cility in OPEC producer Algeria, helped to boost oil prices.
Chinas economy rebounds in Q4, 2012; weakest since 1999
Fourth-quarter growth in the worlds second-largest economy was a little stronger than expected, at 7.9 percent versus analyst forecasts of 7.8 percent, while a sharp drop in U.S. unemployment claims and a surge in residential construction helped boost investor confidence.
The number of Americans filing new claims for unemployment aid hit a five-year low last week and residential construction surged in December, the latest signs that the U.S. economic recovery remains on track.
Chinas numbers followed data from the United States that gave investors confidence the worlds largest oil consumer is weathering an uncertain fiscal environment surprisingly well.
Coming Up: U.S. Reuters/UMich consumer sentiment; 1455 GMT (Updates prices)
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While we do expect some moderation of sequential quarter-on-quarter growth in the first-half, in our view, China is now on track for around 8.4 percent P growth this year, after 7.8 percent in 2012.
The China data was largely in line with expectations and thats reflected in the oil markets. At the moment, its steady as it goes, said Ric Spooner, chief market analyst at CMC Markets in Sydney.
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CHINA HOPES
With 14,000 job cuts threatened at Anglo American Platinums South Africa mines, an army of men ce the grim task
Chinas fourth-quarter bounce from growth of 7.4 percent in the third quarter -- its lowest since the depths of the global financial crisis -- left full year growth at 7.8 percent, 2012 the weakest year of economic expansion since 1999.
Other data released alongside P showed industrial output grew 10.3 percent in December from a year ago, versus expectations of 10.1 percent.
By Manash Goswami and Ramya Venugopal
Fundamental company data provided by Capital IQ. Historical chart data and daily updates provided by Commodity Systems, Inc. (CSI). International historical chart data and daily updates provided by Morningstar, Inc.
Brent targets $111.82 -technicals
The broad demand outlook is for moderate growth so markets should be generally preparing to improve, although for Brent, the upside may be limited by adequate supply.
Algerian forces stormed a desert gas complex to free hundreds of hostages but 30, including several Westerners, were killed in the assault, along with at least 11 of their Islamist captors, an Algerian security source told Reuters. (Editing by Clarence Fernandes and Tom Hogue)
Brent is headed for its third weekly gain in four, while U.S. crude is poised for its sixth weekly gain.
Front-month Brent added 28 cents to stand at $111.38 a barrel by 0713 GMT, extending Thursdays jump of $1.42. U.S. oil was up 16 cents at $95.65, after ending up $1.25 and touching an intraday peak of $96.04, its highest since Sept. 19.
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Its implied oil demand rose to a record high in December, although its annual increase of 4.5 percent in 2012 was lower than 6.3 percent in 2012. Still, recent data suggests that China has bounced out of the UPDATE 2-Brent holds above $111 supported by China growth data - Yahoo!7 Finance Australia_ free market dataslump seen earlier in the year, which may prop up demand from the worlds second-biggest oil consumer.
The data shows that China entered 2013 with healthy growth momentum, RBS analysts said in a report.
