Oil rises as U.S. gasoline stocks fall
Thursday, April 14, 2011
U.S. crude oil futures ended higher on Wednesday after diving nearly 6 percent in two days, led by gains gasoline fueled by government inventory data showed the biggest drop in inventories since 1998.
U.S. gasoline stocks down 7 million barrels last week due to lower capacity utilization distiller 3 percentage points and clear the winter fuel supplies to make room for summer blends, the data from the U.S. Energy Information Administration showed.
EIA said crude stockpiles rose 1.6 million barrels, more than the increase expected 1.0 million barrels, while distillate inventories fell 1.7 million barrels, against expectations supplies will be slightly higher.
Traders and analysts said oil is under pressure when the dollar index soared on expectations deficit cut proposals of President Barack Obama will support the greenback, but eventually ended up near the top today.
Crude futures found support in the area near the intraday low $ 105.31 Wednesday, near the area around the resistance level of $ 106 at a recent rally in crude oil above $ 113 per barrel and an intraday low of $ 105.47 Tuesday.
On the New York Mercantile Exchange, crude <CLK1> May rose 86 cents, or 0.81 percent, to settle at $ 107.11, trading from $ 105.31 to $ 107.43.
Thursday, April 14, 2011
U.S. crude oil futures ended higher on Wednesday after diving nearly 6 percent in two days, led by gains gasoline fueled by government inventory data showed the biggest drop in inventories since 1998.
U.S. gasoline stocks down 7 million barrels last week due to lower capacity utilization distiller 3 percentage points and clear the winter fuel supplies to make room for summer blends, the data from the U.S. Energy Information Administration showed.
EIA said crude stockpiles rose 1.6 million barrels, more than the increase expected 1.0 million barrels, while distillate inventories fell 1.7 million barrels, against expectations supplies will be slightly higher.
Traders and analysts said oil is under pressure when the dollar index soared on expectations deficit cut proposals of President Barack Obama will support the greenback, but eventually ended up near the top today.
Crude futures found support in the area near the intraday low $ 105.31 Wednesday, near the area around the resistance level of $ 106 at a recent rally in crude oil above $ 113 per barrel and an intraday low of $ 105.47 Tuesday.
On the New York Mercantile Exchange, crude <CLK1> May rose 86 cents, or 0.81 percent, to settle at $ 107.11, trading from $ 105.31 to $ 107.43.
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