Crude above $82 in Asia

Crude managed advanced throughout the Asian session above $82 per barrel; the highest in more than two months, supported by U.S data released last Friday that reflected improvement in the labor market.

U.S indices ascended last Friday, where the Dow Jones rose by 1.2%, after the nonfarm payrolls reflected a decline in layoffs pace and unemployment last month to 9.7%. This new optimistic data increased expectations of improvement across the global economy and also printed a brighter outlook for oil demand from the world’s biggest consumer.

In Japan, which is considered the second largest oil importer in Asia, the current account surplus widened after exports inclined for the second month in a row, which is a sentiment of support for demand on oil as nations continue to recovery from the recession.

Recently, Kuwait, considered to be the fourth largest oil producer in OPEC, released a statement that it would be maintaining production targets at its previous levels in June; therefore showing that the restraints the agency had put on supply levels will play a role in reducing elevated crude stockpiles in consuming nations.

The S&P GSCI index closed late last Friday at 526.34 higher by 6.61 points; whereas the RJ/CRB commodity index recorded gains of 2.16 points to close at 276.93.

In NYMEX as of 03:15 EST; future heating contracts climbed to record $211.590 per gallon by $1.850; motor fuel is trading around $229.380 per gallon after rising $2.820; whereas natural gasoline dropped by $0.046 to record $4.547 per 1000 cubic feet. In London, Brent inclined by $0.650 to record $80.540.

Crude today opened at $79.70 per barrel recording its highest at $82.350 and lowest at $78.05 per barrel, while currently trading around $82 per barrel.

Ecpulse

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