Oil prices climb ahead of US inventories data

3:34 pm

Oil prices rose today ahead of a report that may show that crude stockpiles in the US shed more than a million barrels last week.

Later today, the Department of Energy will release its closely watched weekly oil inventories data. Analysts polled by Bloomberg predicted a decline of 1.3 million barrels in America?s crude stockpiles.

In addition, demand for oil was supported by positive US data.

The reported that industrial production in the US rose 0.4 percent in June following a 0.2 percent drop in the previous month, while the Commerce Department said housing starts surged 6.9 percent to an annualised rate of 760,000 last month, hitting the highest level since 2008.

However, the figures also revealed that building permits dipped 3.7 percent.

Earlier in the session, China, currently the world's second largest consumer of crude oil, told the markets that property prices in 70 major cities increase in June after falling for eight straight months.

In other news, Ben Bernanke said in his testimony to the US Congress yesterday that the recovery had been sluggish and progress with reducing the jobless rate was ?frustratingly slow?, giving traders hope that the Fed could consider more bond buying to shore up the economy.

However, the Fed chairman did not indicate whether any stimulus action was imminent.

US light, sweet crude for August delivery, currently the most actively traded contract on the New York Mercantile Exchange (NYMEX), rose 11 cents to US$89.33/barrel this afternoon.

September Brent crude climbed 36 cents to US$104.36/barrel on the ICE Exchange.

Today?s top risers in the oil and gas sector were:

(), up 12.5 percent at 0.873 pence at midday

Cadogan Petroleum (), up 8 percent at 22.5 pence

(), up 5 percent at 10 pence

(), up 4 percent at 53.4 pence

Edgon Resources (), up 4 percent at 7.3 pence

(), up 4 percent at 940 pence

The top fallers were:

(), down 9 percent at 0.5 pence at midday

Frontera Resources (), down 9 percent at 0.5 pence

(), down ?7.5 percent at 9 pence

(), down 6.5 percent at 5 pence

Borders & Southern Petroleum (), down 6.5 percent at 14.9 pence

Falkland Oil & Gas (), down 6 percent at 70.25 pence

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Source: http://www.proactiveinvestors.com/columns/oil-gas-market-wrap/1730/oil-prices-climb-ahead-of-us-inventories-data-1730.html

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