Investing.com - Crude oil futures rebounded in Asian trading on Thursday, brushing off earlier losses that came on news that supplies in the U.S. continued increasing as well as on fears the European debt crisis may be rekindling, opting instead to rise on solid U.S. jobs data.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in May traded at USD102.03 a barrel, up 0.55%, down from a session high of 102.13 and up from an earlier session low of USD101.96.
In the U.S., crude stockpiles continue to rise, suggesting that gasoline prices have risen to the point that consumers are forgoing filling up their cars and making alternative commuting plans or are curtailing driving altogether.
Last week, crude supplies climbed by 7.8 million barrels, far outpacing expectations for a gain of 2.2 million barrels, according to data from the American Petroleum Institute.
Prior to Asia's opening on Thursday, the U.S. Depart of Energy reported in its weekly bulletin that U.S. crude oil inventories rose by 9.0 million barrels in the week ending March 30, much higher than expectations for a 2.2 million-barrel increase.
Total U.S. crude oil inventories were reported at 362.4 million barrels as of last week, the highest since August.
The U.S. is the world’s largest consumer of oil, responsible for almost 22% of global oil demand.
Crude battled bearish forces on other fronts as well.
Also in the U.S., the Institute of Supply Management said its non-manufacturing purchasing managers' index fell to 56.0 in March from 57.3 in February.
Analysts had expected the index, which gauges the health of the U.S. service sector, to come in at 57.0 in March.
Meanwhile in Spain, the government sold at auction EUR2.59 billon of government bonds, short of a EUR3.5 billion target, leaving investors questioning the effectiveness of a recent austerity budget.
Following the auction, the yield on Spanish 10-year bonds climbed to 5.7%, up from 5.5% before the sale.
The Spanish government, meanwhile, has said the country’s public debt will rise to a record 79.8% of gross domestic product this year.
Jobs data out of the U.S., however, prompted investors to look at oil in a new light.
In the U.S., the ADP National Employment Report showed the country's private sector added a net 209,000 nonfarm payrolls to the economy in March, above expectations for a gain of 200,000.
The ADP figures are released two days ahead of the government's officials unemployment figures, and many analysts have expected recent gains to temper somewhat, however, most agree that a surprise on the upside will mean the U.S. economy is beyond just recovering from the worst downturn since the Great Depression and finally on its way to lasting recovery.
A recovering economy needs more oil to grow, and with ongoing tensions in the oil-rich Middle East showing no signs of ending anytime soon, oil tested support and rose early in Asian trading.
On the ICE Futures Exchange, Brent oil futures for May delivery were up 0.12% and trading at USD122.69 a barrel, up USD20.66 from its U.S. counterpart.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in May traded at USD102.03 a barrel, up 0.55%, down from a session high of 102.13 and up from an earlier session low of USD101.96.
In the U.S., crude stockpiles continue to rise, suggesting that gasoline prices have risen to the point that consumers are forgoing filling up their cars and making alternative commuting plans or are curtailing driving altogether.
Last week, crude supplies climbed by 7.8 million barrels, far outpacing expectations for a gain of 2.2 million barrels, according to data from the American Petroleum Institute.
Prior to Asia's opening on Thursday, the U.S. Depart of Energy reported in its weekly bulletin that U.S. crude oil inventories rose by 9.0 million barrels in the week ending March 30, much higher than expectations for a 2.2 million-barrel increase.
Total U.S. crude oil inventories were reported at 362.4 million barrels as of last week, the highest since August.
The U.S. is the world’s largest consumer of oil, responsible for almost 22% of global oil demand.
Crude battled bearish forces on other fronts as well.
Also in the U.S., the Institute of Supply Management said its non-manufacturing purchasing managers' index fell to 56.0 in March from 57.3 in February.
Analysts had expected the index, which gauges the health of the U.S. service sector, to come in at 57.0 in March.
Meanwhile in Spain, the government sold at auction EUR2.59 billon of government bonds, short of a EUR3.5 billion target, leaving investors questioning the effectiveness of a recent austerity budget.
Following the auction, the yield on Spanish 10-year bonds climbed to 5.7%, up from 5.5% before the sale.
The Spanish government, meanwhile, has said the country’s public debt will rise to a record 79.8% of gross domestic product this year.
Jobs data out of the U.S., however, prompted investors to look at oil in a new light.
In the U.S., the ADP National Employment Report showed the country's private sector added a net 209,000 nonfarm payrolls to the economy in March, above expectations for a gain of 200,000.
The ADP figures are released two days ahead of the government's officials unemployment figures, and many analysts have expected recent gains to temper somewhat, however, most agree that a surprise on the upside will mean the U.S. economy is beyond just recovering from the worst downturn since the Great Depression and finally on its way to lasting recovery.
A recovering economy needs more oil to grow, and with ongoing tensions in the oil-rich Middle East showing no signs of ending anytime soon, oil tested support and rose early in Asian trading.
On the ICE Futures Exchange, Brent oil futures for May delivery were up 0.12% and trading at USD122.69 a barrel, up USD20.66 from its U.S. counterpart.