Crude Reverses Some Losses On Robust Chinese Trade Data

Crude oil rose for the first time in five days on improved demand outlook following the robust trade numbers from the China, the world’s second largest oil consumer, while crude inventories fell yet lower than expected.

China’s exports and imports rebounded in July more than expected, signaling the economy is stabilizing. Exports rose 5.1% compared with the expected rise of 2%, while crude oil imports hit a record 6.15 million barrels per day.

The EIA showed yesterday that crude inventories fell by 1.3 million barrels to 363.3 million, less than the 1.5 million projected decline. Gasoline inventories rose 135,000 barrels last week although they were projected to fall, while distillates increased by 469,000 barrels.

- Crude is trading around $104.53 a barrel after rising $0.16

- Brent is trading around $107.51 a barrel after rising $0.06

However, gains were capped as some investors remained cautious as the US Federal Reserve could roll back its monetary stimulus probably starting next month, and move that could boost the dollar, weighing on commodities such as oil.

Oil price gains were also limited by easing geopolitical tensions between Iran and the United States after Iran`s new president Hassan Rouhani signaled willingness to negotiate with the West over Tehran`s disputed nuclear program.

While Libya’s oil crisis due to workers` protests remains a key concern, crude exports from the North Sea are scheduled to rise in September after maintenance. In Yemen, authorities said they stopped a plot by al-Qaeda to seize two major oil and gas export terminals.

- Natural gas is trading at $3.233 per cubic feet after falling 0.43%

- Gasoline is trading at $2.8797 per cubic feet after rising 0.36%

- Heating oil is trading at $2.9683 a gallon after rising 0.14%