Crude oil rose for the first time in three days after US consumer confidence improved demand outlook for the world's largest oil consumer. Moreover, strong consumption of heating fuels due to a cold weather in the US added to gains.
Supply disruption fears from Libya continued to put a floor on prices. The country’s oil production has fallen below 400,000 barrels per day as protests have partly blocked flows from the El Sharara oilfield.
However, crude is not expected to rise or fall much from the current levels as the “market is now looking for more economic indicators to gauge the outlook for oil demand, particularly from the United States and Europe”, said Ken Hasegaw from Newedge Japan.
Prices are also likely to remain range-bounded later today amid thin volumes, because of the President’s Day holiday in the United States on Monday.
Gains may be limited today after Japan, the world’s third biggest economy, released a disappointing fourth-quarter gross domestic product data. The economy grew a quarterly 0.3% from October to December, below estimates for a 0.7% gain.
- WTI crude oil futures for March is trading around $ 100.82 a barrel after rising $0.52
- Brent futures for March settlement is trading around $ 109.03 a barrel after falling $0.06
- Natural gas is trading at $ 5.439 per cubic feet after rising 4.32%
- Gasoline is trading at $ 2.8062 per cubic feet after rising 0.03%
- Heating oil (diesel) is trading at $ 3.0851 a gallon after rising 0.22%