Crude At One-Week High Amid Supply Concerns

Crude oil is trading near the highest level in more than a week amid concerns about supply disruptions in the Middle East and Africa. Speculation U.S. crude stockpiles shrank for the first time in a month also provides support to oil prices.

The bloody civil war in Syria and the anti-government demonstrations in Egypt raise concerns about the stability of the region while in Libya oil output has fallen by a third after protesters shut several oilfields and the outlook for Sudan crude exports remain murky.

A report from the US Energy Information Administration (EIA) might show crude inventories probably fell by 2.63 million barrels last week, shrinking for the first time in a month, signaling increased demand in the world’s largest oil consumer.

- Crude is trading around $98.32 a barrel after rising $0.33

- Brent is trading around $103.36 a barrel after rising $0.36

Crude rallied on Monday after data showed US manufacturing activity edged higher in June to a three-month high of 50.9 in June from 49 in May, improving the outlook for growth and oil demand and easing the worries triggered by China’s slowing industrial activity.

With the economic fundamentals improving in the US lately, markets can have the ability to start picking up; however, some nervousness is prevailing as the Federal Reserve is awaited to signal when it will start reducing the stimulus measures.

Although investors are turning their attention to the US nonfarm payrolls data due on Friday for signs on the health of the economy, markets will watch today the American Petroleum Institute (API) supply report and the US’s factory orders numbers.

- Natural gas is trading at $3.577 per cubic feet being unchanged

- Gasoline is trading at $2.7545 a gallon after rising 0.61%

- Heating oil is trading at $2.8823 a gallon after rising 0.30%