Crude futures gain as US stocks fall, Italy set to appoint new PM

24 April 2013 16:17  [Source: ICIS news]

LONDON (ICIS)--NYMEX light-sweet crude oil futures gained more than $1.00/bbl on Wednesday supported by falling crude oil stocks in the US, and on news Italy looks set to appoint a new Prime Minister.

By 14:22 the front-month June NYMEX WTI contract touched an intra-day high at $90.20/bbl, a gain of $1.02/bbl compared with the previous settlement. The contract then edged lower to trade around $90.05/bbl.

At the same time, the front-month June ICE Brent contract was trading around $100.95/bbl, having touched an intra-day high earlier in the day at $101.22/bbl, a gain of 91 cents/bbl compared with Tuesday’s settlement.

Prices found support from Italy, where the country’s recently-elected President Giorgio Napolitano appointed Enrico Letta to form a coalition government. Through the appointment, Letta looks set to become Italy’s new Prime Minister.

Meanwhile, stock markets around the globe were firmer, with indexes in the Asia-Pacific region closing in positive territory, while in Europe, the UK’s FTSE 100, France’s CAC 40 and Germany’s Dax were all trading higher compared with Tuesday’s settlements.

In addition, the American Petroleum Institute issued its weekly stock report showing a small, but unexpected fall in US crude oil stocks last week.

Prices were however capped by a batch of bearish news lingering from Tuesday, including HSBC’s purchasing managers’ index (PMI) for China, which fell to 50.50 for April, while Germany’s composite index contracted for the first time since last October.

The bearish news indicates that two of the world’s largest exporters are facing weaker demand for its products and services from the rest of the world.

By: Kawai Wong
+44 20 8652 3214

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