Crude Above $50/Bbl On Equities,Stockpiles Eyed
LONDON (Dow Jones) - Crude oil futures tracked firmer equity markets to trade back above 50 U.S. dollars per barrel Wednesday, despite expectations that the U.S. will reveal later in the stocks of oil continues to rise.
Concerns about the potential impact of swine influenza on the economy and the implications for oil demand also helped to drag down growth.
Trading volumes were thin as market participants decided to wait for the 1430 GMT release inventory data from the U.S. Energy Information Administration, which would highlight the weak demand for oil caused the U.S. oil inventories to balloon to nearly 19-year level. Traders were left by the careful separate American Petroleum Institute data revealing Tuesday crude stocks rose almost 5 million barrels last week.
"Despite the continuous stream of bearish news and information, oil markets remain surprisingly resilient," said David Hart, oil and gas analyst at Hanson Westhouse in London. "If there is a large building above the expectations of the U.S. government inventory data later today will be the resiliency further research.
In 1135 GMT, the front month June Brent contract on London ICE futures exchange was 77 cents to 50.76 U.S. dollars per barrel.
The front month June light, sweet, crude contract on the New York Mercantile Exchange was trading 92 cents higher at 50.84 U.S. dollars per barrel.
ICE in fuel oil supply contract in May was $ 9.00 per $ 428.75 per metric ton, while Nymex gasoline for May delivery was at 226 points of 142.03 cents a gallon.
According to Dow Jones Newswires survey of 12 analysts of U.S. stocks of crude oil will have risen between 1 million barrels and 3.5 million barrels last week. The outlook for stocks of gasoline is more diverse, a decrease of 200,000 barrels on average seen. Distillates are seen higher refinery 700,000 barrels in use is seen rising 0.1 percentage points to 83.5% of capacity.
Concerns about the potential impact of swine influenza on the economy and the implications for oil demand also helped to drag down growth.
Trading volumes were thin as market participants decided to wait for the 1430 GMT release inventory data from the U.S. Energy Information Administration, which would highlight the weak demand for oil caused the U.S. oil inventories to balloon to nearly 19-year level. Traders were left by the careful separate American Petroleum Institute data revealing Tuesday crude stocks rose almost 5 million barrels last week.
"Despite the continuous stream of bearish news and information, oil markets remain surprisingly resilient," said David Hart, oil and gas analyst at Hanson Westhouse in London. "If there is a large building above the expectations of the U.S. government inventory data later today will be the resiliency further research.
In 1135 GMT, the front month June Brent contract on London ICE futures exchange was 77 cents to 50.76 U.S. dollars per barrel.
The front month June light, sweet, crude contract on the New York Mercantile Exchange was trading 92 cents higher at 50.84 U.S. dollars per barrel.
ICE in fuel oil supply contract in May was $ 9.00 per $ 428.75 per metric ton, while Nymex gasoline for May delivery was at 226 points of 142.03 cents a gallon.
According to Dow Jones Newswires survey of 12 analysts of U.S. stocks of crude oil will have risen between 1 million barrels and 3.5 million barrels last week. The outlook for stocks of gasoline is more diverse, a decrease of 200,000 barrels on average seen. Distillates are seen higher refinery 700,000 barrels in use is seen rising 0.1 percentage points to 83.5% of capacity.
