Powered By

Breaking News

Crude above $90 on China growth vow but US and eurozone continue to weigh

Publish Date05/03/2013 07:47:17 AM

Last Update05/03/2013 12:32:36 PM

Crude above $90 on China growth vow but US and eurozone continue to weigh

Crude oil managed on Tuesday to rebound from this year’s lowest, reached on Monday at $98.34, as China’s vow to deliver a 7.5% economic growth in 2013 eased worries over demand for oil from the world’s second largest oil consumer.

Premier Wen Jiabao said on Tuesday ahead of the country`s annual parliamentary meetings that his country will boost fiscal spending to assure an economic growth of 7.5% this year, a 3.5% inflation target and add more than 9 million urban jobs.

China setting cheerful economic targets for 2013 eased concerns over the nation’s economic growth triggered by the weaker manufacturing and service sectors and the stricter measures imposed on the property market.

- Crude is trading as of this writing around the $30.35 a barrel level compared with the opening at $90.17, while the highest is at $90.43 and the lowest is at $90.10

Also helping crude to slightly rebound on Tuesday is the continued tensions in the Middle East and the North Sea Brent pipeline system which remained shut after a platform leak and there is no estimate date for when it will resume.

- Brent is trading around the $110.45 a barrel after rising 0.33%

Crude dropped on Monday below $90 a barrel for the first time this year due to the fiscal crisis in the United States and the continuing political uncertainty in Italy amid signs he country could be edging towards another election within months.

Sentiment remain weak following the introduction of $85 billion in automatic government spending cuts in the United States, which could weaken the economic recovery and dent demand on fuel in the world’s largest oil consumer.

In the eurozone, the PMI data showed that activity in the manufacturing sector is weakening while the region`s sentiment tumbled in March, breaking a six-month trend of gains, darkening the prospects of the eurozone`s recovery.

Moreover, indicators that oil markets are amply supplied will keep gains limited on the short term. A survey last week showed that production from the Organization of the Petroleum Exporting Countries increased in February for the first time in four months.

Meanwhile, the U.S. Energy Information Administration reported last week that U.S. oil imports in December were the lowest since 1996. Moreover, the API report later in the day might show crude inventories in the U.S. climbed last week for the seventh straight week.

Oil prices may continue to be vulnerable as investors will be watching the ECB and BoE, both meeting on Thursday to announce their monetary policy decisions, while the U.S. will release its jobs report on Friday.

- Natural gas is trading as of this writing at $3.571 per 1,000 cubic feet after rising 1.19%

- Heating oil is trading at $2.9262 a gallon after rising 0.24%

- Gasoline is trading as of this writing at $3.0982 a gallon after falling 0.01%


Member Account Required
You must be registered as a member of the forums and logged into your account to post messages. If you do not have a member account, please Sign In or Register.
United States
Asia Pacific
Economic Calendar
Holiday Calendar
ECB Calendar
Feds Calendar
BoE Calendar
Boj Calendar
Top News
FX Updates
Market News
Global Highlights
Political News
Around the World
At A Glance & Video Commentaries
Market Pulse
Press Releases
About Us
Contact Us
Privacy Policy
Terms of Services

Risk Disclaimer : All information on this page is subject to change. The use of this website constitutes acceptance of our Privacy Policy and Terms of Service. Please read our Privacy Policy, Risk Disclaimer, Terms of Services and all legal disclaimers. Please note that Forex trading (OTC Trading) involves substantial risk of loss, and may not be suitable for everyone.

Opinions expressed at ICN.com are those of the individual authors and do not necessarily represent the opinion of ICN.com or its management, shareholders, affiliates and subsidiaries. ICN.com has not verified the accuracy of any claim or statement made by any independent writer and is reserved as their own and ICN.com is not accountable for their input. Any opinions, news, research, analysis, prices or other information contained on this website, by ICN.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. ICN.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. The data contained on this website is not necessarily real-time or accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market prices, meaning prices are indicative and not appropriate for trading purposes. ICN.com does not bear any responsibility for any trading losses you might incur as a result of using this data.