* Price consolidates as technical charts show momentum fades
* U.S. dollar index falls as euro strengthens <EUR=>
* China's crude imports surge in March, data show
(Updates prices, detail)
By Christopher Johnson
LONDON, April 12 (Reuters) - Oil prices slipped below $85 a
barrel on Monday, consolidating despite a drop in the dollar and
bullish data showing a big jump in Chinese crude imports.
Technical chart analysts said the oil market was running out
of upward momentum after a sharp rise in prices at the end of
March and in early April. The pull-back came despite factors
that analysts said were supportive for the market.
Euro zone finance ministers approved a giant 30 billion euro
($40 billion) emergency aid mechanism for debt-stricken Greece
on Sunday but stressed Athens had not requested the plan be
activated yet. []
The news drove the euro to its highest levels in nearly a
month in Asian trade, while the dollar index <.DXY> fell 0.6
percent against a basket of currencies on Monday.
A weak dollar often supports oil prices, making commodities
denominated in dollars cheaper for other currency holders.
U.S. crude for May delivery <CLc1> was down 36 cents to
$84.56 a barrel by 1323 GMT, wiping out an earlier 79 cent gain.
"The weaker dollar and strongly bullish Chinese data should
be very positive for oil," said Daniel Briesemann, commodities
analyst at Commerzbank. "Of course fundamentally, these high oil
prices cannot be justified, but based on sentiment, the market
still has room to go up, we think."
London Brent crude <LCOc1> rose 7 cents to $84.90, moving to
a premium above U.S. crude, also known as WTI, for the first
time in months with traders saying the North Sea grade was
benefiting more than its U.S. counterpart from the Chinese data.
TARGET $90?
"International demand ... is having a more positive impact
on Brent than WTI," said Christopher Bellew, broker at Bache
Commodities. "U.S. crude oil stocks are high and WTI has its
limitations as an (international) marker price because it is
based on a landlocked crude, well away from the coast."
The last time Brent futures traded consistently above U.S.
crude was in December.
China's strong demand for oil and copper showed no let-up in
March, with imports rising rapidly despite higher prices as
factories returned to work in earnest after the long Lunar New
Year holidays. []
Chinese crude imports jumped 13.8 percent from the previous
month and reached 4.95 million barrels a day, preliminary data
released by the General Administration of Customs showed.
In a sign of upbeat sentiment, open interest positions were
heavier at the NYMEX May $90 call option and the $80 and $75 put
options, according to Reuters data on Friday. []
Money managers also extended net crude oil long positions on
the New York Mercantile Exchange to a record 186,732 in the week
to April 6, up from 169,478 in the previous week, the Commodity
Futures Trading Commission said on Friday. []
But crude oil's positive momentum has been showing signs of
running out of steam, technical analysts said, making a test of
support more likely for now than a fresh move to the upside.
"The positive momentum on WTI is starting to peak," said
Olivier Jakob, analyst at Petromatrix. "The challenge this week
for the bulls will clearly be to maintain support (at) $85."
(Additional reporting by Fayen Wong in Perth; editing by Sue
Thomas)
