Back Oil Rises In Asia After Recent Losses

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Crude oil futures rose in the Asia electronic session today as the traders bought the commodity after it tumbled down more than 1% yesterday, knocked lower by concerns over the ongoing debt crisis in Cyprus and worries it could spread further into Europe.
High U.S. oil inventories and weak demand in the world's biggest oil consumer also kept prices down. The Energy Information Administration reported Wednesday U.S. crude-oil stocks fell by 1.3 million barrels last week, while analysts expected a 1.7-million barrel rise. The surprise decline followed nine straight weeks of increases that plumped up inventories by 24 million barrels.
But even with the decline, crude stocks, at near 383 million barrels, are unusually high and 12% above the five-year average for this time of year, the biggest surplus in two months. At the same time, the EIA said U.S. oil demand dropped last week to its lowest level since January.
The Fed announced Wednesday that it will leave its loose monetary policy in place, citing concerns over high unemployment levels and risks from tax increases and federal government spending cuts.
Fed officials reaffirmed their commitment to keeping short-term interest rates at record low levels at least until unemployment falls to 6.5%. The current unemployment rate is 7.7%.
Meanwhile, the European Central Bank has warned it won't extend beyond Monday the emergency funding that has kept Cypriot banks in operation while a bailout plan was being negotiated. The Cypriot Parliament rejected an earlier package that included a tax levy on bank accounts in the island nation, fueling fears of a run on banks, which have been ordered to close this week.
Worries about Cyprus sparked fears debt problems could flare anew elsewhere in Europe and have weighed on the euro, sending the common currency down against the dollar. In times of dollar strength, some investors using foreign currencies avoid dollar-based investments such as oil futures as they become pricier due to currency issues.
Light, sweet crude oil for May delivery on the New York Mercantile Exchange are trading up 27 cents at $ 92.71 per barrel. Yesterday, it settled 1.1%, or $1.05 lower, at $92.45 a barrel.
MCX April crude oil futures may open today’s session near Rs 5060 levels with resistance near Rs 5090 levels and support near Rs 5025 levels.
Source  by Commodity Insights