Oil rebounded from the recent falls in Asian trade today after upbeat US data boosted confidence in the world’s largest economy, analysts said.
New York’s main contract, light sweet crude for delivery in June, gained 14 cents to $94.35 a barrel and Brent North Sea crude for June delivery added six cents to $102.66 in mid-morning trade.
“Oil has been on a downtrend for more than a week. We are seeing dealers cutting their short position, which has tipped prices a little higher,” Kelly Teoh, market strategist at IG Markets in Singapore, said.
US retail sales edged up 0.1 per cent in April from March, led by sales of building and garden supplies and clothing, Commerce Department data released on Monday showed.
The slight improvement in consumer spending to $419 billion was better than expected. Analysts had predicted a decline of 0.3 per cent as consumers dealt with a January 1 increase on payroll and other taxes.
“Retail sales numbers suggest the US economy is gaining its strength and that the downsides are limited,’’ Teoh said.
Crude futures had fallen earlier in the week with fresh signs of economic weakness in China — the world’s largest energy consumer — and an output boom in North America.
It also remained under pressure by brimming US stockpiles, which rose to a record level last week.