Oil prices drop on weak China data, Libya supply bets

Oil prices retreated Thursday on unexpected decline in China's exports and speculation that oil supply from Libya might increase.

The weaker-than-expected Chinese trade data weighed on the oil prices.

China's exports slumped 6.6 percent to 170.11 billion U.S. dollars in March, customs data showed on Thursday, raising concerns over the strength of the country's economy.

Imports were down 11.3 percent to 162.41 billion U.S. dollars and total foreign trade volume declined 9 percent to 332.52 billion U.S. dollars, the General Administration of Customs (GAC) said.

Libyan lawmakers will meet on April 13 to discuss a deal that would return the two ports to the government.

Market was optimistic about the talks and expecting several hundred thousand barrels of Libyan crude to flow to the international market. Libya is right on Europe's doorstep and it has more impact on Brent price.

On the economic front, U.S. jobless claims last week fell to a near seven-year low, giving some support to the crude market.

The number of Americans who initially applied for jobless benefits in the week ending April 5 sank by 32,000 to seasonally adjusted 300,000, said the Labor Department Thursday morning, adding that the last time initial claims were this low was in May 2007.

Light, sweet crude for May delivery moved down 20 cents to settle at 103.4 U.S. dollars a barrel on the New York Mercantile Exchange, while Brent crude for May delivery lost 52 cents to close at 107.46 dollars a barrel.