Oil Weak As Supplies Rise, China Deficit

Oil......
China crude oil futures are trading lower in the Asia electronic session today pressured by sharp rise in the weekly crude oil supplies and also due to weak trade data from China. However, the rise in oil price forecast by EIA should support the commodity.
China swung to a trade deficit of $880 million in March, the General Administration of Customs reported Wednesday, as imports surged 14.1% from a year earlier. The deficit followed February's $15.2 billion surplus. The gain in imports fell more than 15% in February. Exports rose 10% from March 2012.
The U.S. Energy Information Administration on Tuesday raised its West Texas Intermediate crude-oil and natural-gas price forecasts for this year, from its March estimates. WTI crude-oil prices are likely to average $94 in 2013, the EIA said in its short-term energy outlook report. In March, it forecast an average of $92 in for 2013.
NYMEX light sweet crude oil futures for May contract are trading down 30 cents at $ 93.92 a barrel in the Asia electronic session today. Traders await reports from, Energy Information Administration and OPEC this week.
Yesterday, the crude oil futures for May delivery climbed 84 cents, or 0.9%, to settle at $94.20 a barrel on the New York Mercantile Exchange. That was the highest settlement since April 3.
Contributing to oil’s gains, March consumer inflation in China came in below expectations, lifting prospects for energy demand, and the U.S. dollar weakened against the euro.
According to data from the American Petroleum Institute issued late Tuesday, crude-oil supplies rose much more than forecast, and gasoline stockpiles unexpectedly climbed for the week ended April 5,. The trade group also upwardly revised total stocks for the week ended March 29 by over 500,000 barrels.
MCX April crude oil futures may open today’s session near Rs 5120 levels with resistance near Rs 5150 levels and support near Rs 5090 levels.
Source by Commodity Insights