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NYMEX-Crude edges higher ahead of contract's expiry

Published 05/19/2011, 08:56 PM
Updated 05/19/2011, 09:00 PM

TOKYO, May 20 (Reuters) - U.S. crude futures rose on Friday ahead of the lead contract's expiry, paring a near 2 percent decline the previous day when weak U.S. economic data stoked worries about demand.

FUNDAMENTALS

* NYMEX crude for June delivery was up 42 cents at $98.86 a barrel by 0043 GMT, after settling down $1.66 at $98.44 a day earlier.

The June contract expires at the end of Friday's trading.

* London Brent crude for July delivery was up 15 cents at $111.57 a barrel, after settling down 88 cents.

* Thursday's decline followed weak economic indicators.

U.S. data showed weekly jobless benefit filings fell last week, yet claims remained above 400,000 for the sixth straight week, while sales of previously owned U.S. homes fell in April. [ID:nN19134058]

* The International Energy Agency urged oil producers to boost supply to cut fuel costs and protect economic recovery and appeared to suggest its members could release emergency stockpiles if OPEC does not act. [ID:nLDE74H0VC]

The statement comes just weeks ahead of OPEC's June 8 meeting and a day after price hawk Iran said its hard-line President Mahmoud Ahmadinejad would represent Tehran at OPEC as Iran's caretaker oil minister.

* In its first forecast for the Atlantic storm season that begins on June 1, the U.S. National Oceanic and Atmospheric Administration forecast 12 to 18 named storms, 6 to 10 becoming hurricanes and 3 to 6 major storms. [ID:nN19133012]

MARKETS NEWS

* U.S. stocks edged higher on Thursday, with LinkedIn one of the few standouts in an otherwise lacklustre session as its shares doubled in their trading debut.

* The euro eased against the dollar on Friday, but held on to much of the gains it made the previous day after some weak U.S. economic data underscored expectations that the Federal Reserve will keep interest rates near zero for a while.

DATA/EVENTS

* The following data is expected on Friday: (Time in GMT)

- Data events for May 20 (GMT):

- 0000 Japan BOJ rate decision May 2011

- 1130 India M3 Money Supply 40664

- 1400 U.S. API monthly statistical report Monthly

- 1430 U.S. ECRI Index Weekly (Reporting by Osamu Tsukimori; Editing by Chris Gallagher)

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