UpdateCrude up $1/bbl on weak dollar, soft build in US inventory

20 April 2011 10:22  [Source: ICIS news]

(updates crude prices)

SINGAPORE (ICIS)--US crude futures rose by more than $1/bbl on Wednesday, supported by a weaker US dollar and a smaller-than-expected build in US crude stocks.

At 08:49 GMT, June Brent on London’s ICE futures was trading at session high of $123.05/bbl (€86.14/bbl), up $1.72/bbl on the previous close.

June NYMEX light sweet crude futures were also trading at a session high of $109.84/bbl, up $1.56/bbl.

The US dollar declined against the euro and other leading currencies on Wednesday, making dollar-denominated commodities like oil more attractive to international investors.

Crude prices were also supported by weekly US inventory data from the American Petroleum Institute (API) released on Tuesday, showing a much lower forecast build in crude stocks.

The data also showed a greater-than-expected drawdown in gasoline inventories. Traders now await the more widely followed official US government inventory data from the Energy Information Administration (EIA), which is due out later on Wednesday.

Asian equity markets also firmed on Wednesday, with the Nikkei 225 stock index in Japan rising 1.76%, tracking Wall Street’s overnight gains.

($1 = €0.70)

By: James Dennis
+65 6780 4359

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