Crude oil rose for a second day on speculation improving world demand and OPEC supply restrictions will help slow growth in stockpiles.
A report tomorrow in the U.S., the world’s largest oil consumer, will probably show consumer confidence is at its highest in a month, according to a Bloomberg News survey. Japan, Asia’s second largest oil importer, posted a current account surplus in January as exports climbed for a second month. Kuwait, the fourth largest Organization of Petroleum Exporting Countries producer, will maintain oil export limits through June, the Kuwait Times reported on March 6.
“Macro-economic sentiment seems to be fairly positive,” said Toby Hassall, research analyst with CWA Global Markets Pty in Sydney. “That’s helping to nudge oil up but the actual physical supply and demand data is still soft.”
Crude oil for April delivery rose as much as 54 cents, or 0.7 percent, to $82.04 a barrel in after hours electronic trading on the New York Mercantile Exchange. It was at $81.92 at 1:24 p.m. in Singapore.
The contract increased 1.6 percent to $81.50 on March 5, the highest closing price since Jan. 11, after a report showed U.S. employment declined less than forecast in February. It gained 2.3 percent last week as global equity markets rallied and U.S. refining climbed to a five month high.
Gains in the equity markets are supporting prices, Hassall said. The extent of oil’s rally after last week’s U.S. inventory report was surprising given that crude stockpiles are still rising and gasoline stocks remain high, he said.....Read the entire article.
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