Oil Rises On Data Optimism

Oil.....

Crude oil futures surged on optimistic data from china, the record close in the US Dow Jones and the less than expected rise in the US weekly oil inventories.

Crude oil for June delivery rose 20 cents at $95.82 a barrel in Asian trading hours, inching up from losses after China reported it swung to an $18.16 billion trade surplus in April as exports surged.

The American Petroleum Institute figures released yesterday showed that crude supplies rose 680,000 barrels for the week ended May 3. The trade association’s figure was well below expectations for a rise of 1.9 million barrels in a Platts survey of analysts.

The API data came ahead of the more closely watched report from the U.S. Energy Information Administration, due Wednesday at 10:30 a.m. U.S. Eastern time.

China’s net crude imports, or overseas purchases minus imports, rose to the highest level in three months in April, data from the Beijing-based General Administration of Customs showed today. Cargoes climbed to 5.62 million barrels a day, from 5.39 million a day in March.

Crude prices fell during April by as much as 11%, hurt in part by worries about sluggish demand at a time of ample U.S. petroleum supplies. Oil prices last month managed to come off their lows, ending down by 3.9%.

The EIA, in its monthly Short-Term Energy and Summer Fuels Outlook report, said Tuesday it expects natural-gas spot prices to average $3.80 per million British thermal units this year, up 27 cents from a previous estimate.

Oil production outside the Organization of Petroleum Exporting Countries will rise 2.1 percent to 53.85 million barrels a day in 2013, led by gains in the U.S. and Canada, the EIA said. The output projection was increased by 80,000 barrels from April’s report. U.S. production is projected to climb 14 percent to 7.42 million barrels a day.

OPEC members will produce 35.88 million barrels a day this year, the EIA said. Last month’s forecast was 35.98 million. The administration lowered its outlook for global oil consumption to 89.93 million barrels a day from 90 million estimated last month.

MCX May crude oil futures may open today’s session near Rs 5175 levels with resistance near Rs 5200 levels with support around Rs 5140 levels.

Source by Commodity Insights