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NYMEX crude prices up in Asia ahead of China trade data

Published 05/07/2014, 07:22 PM
Updated 05/07/2014, 07:23 PM
NYMEX crude up in Asia
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Investing.com - Crude oil prices rose in Asia Thursday underpinned by a drop in U.S. stocks and ahead of China trade data expected to show weaker imports.

On the New York Mercantile Exchange, West Texas Intermediate crude oil for delivery in June traded at $100.83 a barrel, up 0.05%, after hitting an overnight session low of $99.62 a barrel and a high of $100.98 a barrel.

Brent crude on the ICE futures exchange rose $1.07, or 1%, to $108.13 a barrel on Wednesday.

China's April trade data is due at an undisclosed time with expectations for a 1.7% decline in exports year-on-year and a 2.3% fall in imports and a trade surplus of $13.90 billion.

Overnight, crude futures shot up on Wednesday after data revealed U.S. oil stockpiles took an unexpected drop last week, painting a picture of a more robust U.S. economy.

The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories declined by 1.8 million barrels in the week ended May 2, defying expectations for an increase of 1.4 million barrels.

Total U.S. crude oil inventories stood at 397.6 million barrels as of last week.

The report also showed that total motor gasoline inventories increased by 1.6 million barrels, compared to forecasts for a gain of 0.2 million barrels, while distillate stockpiles decreased by 0.4 million barrels, compared to expectations for a gain of 0.9 million barrels.

Meanwhile, Federal Reserve Chair Janet Yellen said earlier that the U.S. economy will rebound in the second quarter as the effects of the harsh winter on growth wane.

"With the harsh winter behind us, many recent indicators suggest that a rebound in spending and production is already under way, putting the overall economy on track for solid growth in the current quarter," Yellen said in remarks prepared for the Joint Economic Committee of Congress.

Yellen said she expects growth will expand at a "somewhat faster pace" this year than the 1.9% growth rate seen in 2013. She added that labor market conditions have improved but remain far from satisfactory.

Yellen reiterated that a high degree of monetary accommodation remains warranted given the slack in the economy.

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