As the U.S. dollar is taking a respite, crude oil managed to stay above the $95.00 a barrel level. However, prices seem to be stuck around this level amid hopes of a revival in demand for oil and concerns of a U.S. stockpiles rise.
The U.S. dollar dipped against the yen and the euro, as appetite for risk advanced after an unexpected jump in U.S. retail sales for April, underlining the strength in the world`s biggest economy and the largest oil consumer.
Investors remain nervous about demand from the United States and China amid slowing consumption in Europe. In China, the industrial production rose below expectations, while in the U.S. stockpiles may have climbed further last week.
“We are not 100% sure that the United States is on a path towards steady recovery because data is conflicting. On top of that, China is not looking good and Europe is not looking good. All this is keeping prices in check”, said Yusuke Seta from Newedge, Japan.
- Crude oil is trading around the $95.22 a barrel after rising from the lowest $94.90 to the highest $95.64.
- Brent is trading around $102.75 a barrel at the time of writing after falling 0.07% or $0.07
- The dollar index is trading around 83.15; stronger dollar makes crude and other commodities less appealing to investors.
“Expectations that the U.S. economy is recovering are pushing up the dollar. That in turn is weighing on oil and other commodities”, said Yusuke Seta from Newedge Japan.
Crude inventories probably increased for the fourth week, rising 200,000 barrels to 396 million, the Energy Information Administration (EIA) data may show tomorrow. The American Petroleum Institute (API) will release a separate report today.
Markets are waiting on key economic data from the eurozone later in the day. Europe’s largest economy, Germany, will release its ZEW survey while the eurozone will release its industrial production.
- Natural gas is trading at $3.928 per cubic feet, after rising 0.08%
- Gasoline is trading at $2.8278 a gallon, after rising 0.24%
- Heating oil is trading at $2.8895 a gallon, after falling 0.05%