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Crude gains on German data, though U.S. supply figures cap gains

Published 05/08/2013, 01:49 PM
Updated 05/08/2013, 01:50 PM
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Investing.com - Oil prices rose on Wednesday after German industrial output numbers beat expectations, though supply data out of the U.S. capped the growth-sensitive commodity's gains.

On the New York Mercantile Exchange, light sweet crude futures for delivery in June traded up 0.74% at USD96.33 a barrel on Wednesday, off from a session high of USD96.53 and up from an earlier session low of USD95.25.

Germany's industrial output, which includes manufacturing, mining, electricity and gas concerns, shot up 1.2% in March, the largest increase in a year and defying expectations for a 0.1% decline.

February’s figure was revised up 0.6% from 0.5%.

The numbers bolstered hopes that the German economy, Europe's largest, may post better-than-expected growth rates for the first quarter.

During the October-December period of 2012, Germany's economy contracted by 0.5%.

Official data released on Tuesday revealed that German factory orders climbed 2.2% in March, defying expectations for a 0.5% decline.

The numbers fanned hopes that signs of recovery may be taking place in Europe, which will demand more fuels and energy than once thought going forward.

Also supporting oil prices, Chinese imports and exports rose more than expected in April.

China's exports rose 14.7% year-on-year last month, while imports grew 16.8%, bringing the country’s trade surplus to USD18.6 billion for the month, well above expectations for a USD15.05 billion surplus.

China is the world's second largest oil consumer after the U.S.

Inventory data out of the U.S. capped oil's gains.

The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories rose by 230,000 barrels in the week ending May 3, well below market expectations for an increase of 1.9 million barrels.

Total U.S. crude oil inventories stood at 395.5 million barrels as of last week, the highest level since 1982.

Total motor gasoline inventories, meanwhile, decreased 910,000 barrels, compared to expectations for a decline of 395,000 barrels.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.

Elsewhere on the ICE Futures Exchange, Brent oil futures for June delivery were down 0.15% at USD104.25 a barrel, up USD9.36 from its U.S. counterpart.









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