Oil prices rose in Asia today, buoyed by a lower-than-expected gain in US crude stockpiles and hopes of an interest rate cut by the European Central Bank (ECB), analysts said.
New York’s main contract, light sweet crude for delivery in June, added 40 cents to $91.83 a barrel and Brent North Sea crude for June delivery increased 32 cents to $102.05 in mid-morning trade.
“Prices are supported by data showing US inventory build-up was less than expected,” Tetsu Emori, chief fund manager at Astmax Asset Management in Tokyo, said.
“This suggests that demand in the United States is recovering.”
The US Government’s Department of Energy had yesterday announced that oil stockpiles in the country increased by 900,000 barrels in the week ended April 19, fewer than the forecasts for a gain of 1.2 million barrels.
Changes in US inventory stocks are closely watched by dealers as they indicate the levels of demand in the world’s top crude consumer.
Prices were also supported by speculation that the ECB will soon cut interest rates following the release of poor German economic data yesterday.
“The recent weak data coming out from Europe and the US has also reassured investors more stimulus measures will be taken,” said Desmond Chua, market analyst at CMC Markets in Singapore.