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Crude rises after bearish stockpile data pushes prices to bargain levels

Published 05/14/2013, 08:28 PM
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Investing.com - Oil prices rose in Asian trading on Wednesday after industry data released in the U.S. late Tuesday revealed inventories rose more than expected last week and sent prices falling to attractive levels.

On the New York Mercantile Exchange, light sweet crude futures for delivery in June traded up 0.13% at USD94.33 a barrel on Wednesday, off from a session high of USD94.36 and up from an earlier session low of USD94.10.

In a report, the industry-funded American Petroleum Institute said crude inventories rose by 1.11 million barrels last week compared to a gain of  680,000 barrels in the preceding week.

Analysts had expected crude stocks to rise by 200,000 last week.

The American Petroleum Institute also reported that gasoline stocks fell by 480,000 barrels compared with a contraction of 190,000 last week.

Analysts had were expecting the figure to contract by 630,000 barrels.

The U.S. Energy Information Administration will release official weekly oil and gasoline stockpile data on Wednesday, and fears the numbers will show the country is awash in crude despite an improving economy allowed prices to soften to levels ripe for bottom fishing in Asian trading on Wednesday.

Wednesday’s government report could show crude stockpiles rose by 200,000 barrels to hit levels not seen since 1982, according to some estimates.

The U.S. is the world’s biggest oil consuming country, responsible for almost 22% of global oil demand.

Prices also came under pressure from softer-than-expected output data out of China earlier this week.

Industrial production in the Asian giant rose 9.3% in April, below expectations for a 9.5% increase and following an 8.9% rise the previous month, which also pushed own oil prices.

China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand in recent years.

Elsewhere on the ICE Futures Exchange, Brent oil futures for July delivery were up 0.10% at USD102.58 a barrel, up USD8.22 from its U.S. counterpart.









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