Despite Stronger Dollar, Crude Extends Gains For Fifth Day Running

Crude oil advanced on Wednesday for the fourth straight session amid demand hopes. Ttoday it may extend its gains if data will provide support; as Cyprus’s banks reopen today, worries about the eurozone’s financial stability will weigh.

Despite the stronger dollar, crude extends its gains for the fifth day running amid hopes of demand growth revival in the world`s biggest oil consumer.

Crude oil is trading around the $96.80 a barrel level, compared with the opening at $96.67, while the highest is at $96.90 and the lowest is at $96.53

Brent is trading around $109.89 a barrel after rising 0.18% or $0.20

Cyprus’s banks will reopen today after being shut for almost two weeks, imposing restrictions on cash withdrawals and might curb the use of credit cards to keep a rein on money flows. Worries about the eurozone’s debt problem might cap the gains.

Markets are worried that the Cyprus rescue deal will become a blueprint for solving banking crises in the eurozone. Cyprus is the first to impose losses on bank depositors, raising the prospects of savers pulling their money out in some other eurozone countries. This will intensify the eurozone’s financial crisis and could increase demand on safe haven.
Also weighing on oil prices is the rise in the Italian government`s cost of borrowing to the highest level since October. This reflects the political gridlock that continues to affect the nation.

In the U.S., crude inventories rose by 3.26 million barrels last week according to the Energy Information Administration (EIA) report yesterday. Gasoline inventories fell 1.6 million barrels while distillates fell 4.51 million barrels.

Natural gas is trading at $4.114 per cubic feet after rising 1.13%

Heating oil is trading at $2.9154 a gallon after rising 0.01%

Gasoline is trading at $3.105 a gallon after falling 0.34%

Markets will focus today on U.S. GDP numbers, as well as initial jobless claims and personal consumption. Investors are waiting for next week’s U.S. employment data to see if the numbers confirm the recent string of positive indicators.