Crude oil futures maintain gains after U.S. supply report
Investing.com
Published Apr 24, 2013 10:37AM ET
On the New York Mercantile Exchange, light sweet crude futures for delivery in June traded at USD90.15 a barrel during U.S. morning trade, up 1.1% on the day.
Prices traded at USD90.38 a barrel prior to the release of the supply data.
New York-traded oil rose by as much as 1.4% earlier in the session to hit a daily high of USD90.40 a barrel, the strongest level since April 15.
The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories rose by 0.9 million barrels in the week ended April 19, below expectations for an increase of 1.5 million barrels.
Total U.S. crude oil inventories stood at 388.6 million barrels as of last week.
The report also showed that total motor gasoline inventories decreased by 3.9 million barrels, compared to expectations for a decline of 0.2 million barrels.
The U.S. is the world’s biggest oil consuming country, responsible for almost 22% of global oil demand.
Oil prices were higher ahead of the supply data amid growing expectations the European Central Bank will cut interest rates at its meeting next month to spur economic activity and boost growth in the euro zone.
Oil traders shrugged off a U.S. government report which showed durable goods orders fell unexpectedly in March, while core orders plunged, underlining concerns over the U.S. economic outlook.
The Commerce Department said durable goods orders dropped 5.7% last month, worse than expectations for a decline of 2.8%.
Core durable goods orders, which exclude transportation items, fell 1.4% in March, compared to expectations for a 0.5% increase.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for June delivery rose 0.55% to trade at USD100.88 a barrel, with the spread between the Brent and crude contracts standing at USD10.73 a barrel.
Wall Street investment bank Goldman Sachs cut its three-month outlook for Brent to USD100 a barrel from USD110 and lowered its 2013 forecast to USD105 from USD110, citing concerns over Chinese oil demand prospects.
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Written By: Investing.com
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