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Wednesday, July 18, 2012

Crude oil futures rose july 19 2012

Crude oil futures rose july 19 2012 : Crude oil futures rose in Asian trading Thursday after U.S. housing starts surprised on the upside, reaching their highest level in nearly four years. Dwindling U.S. gasoline supplies sent crude rising as well, pointing to a U.S. economy that continues to grow despite headwinds and will need more fuels and energy going forward.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in September traded at USD90.18 a barrel on Thursday, up 0.01%, off from a session high of USD90.36 and up from an earlier session low of USD88.91.

Housing starts jumped 6.9% in June to a seasonally-adjusted annual rate of 760,000 units, a near four-year high and well above expectations for a gain of 5.2% to 745,000 units.

Housing starts for May were revised up to 711,000 units from a previously reported 708,000 units.

Building permits issued in June dropped 3.7% to a seasonally adjusted 755,000, worse than expectations for a decline of 2.4% to 765,000.

Building permits issued in May totaled 784,000.

The data on housing starts sent oil climbing in U.S. and European sessions, which carried over into Asian on Thursday as the numbers indicated fundamental improvement to the housing sector, the one area of the economy that threw the U.S into a downturn and continues to weigh on its recovery today.

Dwindling U.S. gasoline stockpiles lifted moods as well.

In the U.S., the Energy Information Administration said in its weekly report that U.S. crude oil inventories declined by 809,000 million barrels in the week ended July 13, a little off compared to expectations for a decline of 1.1 million barrels.

U.S. crude supplies fell by 4.7 million barrels in the preceding week. Total U.S. crude oil inventories stood at 377.4 million barrels as of last week.

Total motor gasoline inventories, however, decreased by 1.8 million barrels, well beyond market expectations for a gain of 1.1 million barrels, after rising by 2.75 million barrels in the preceding week.

The numbers sparked demand among traders eager to brush aside Federal Reserve Chairman Ben Bernanke's rather downbeat view of the U.S. economy at a congressional testimony.

On the ICE Futures Exchange, Brent oil futures for September delivery were up 0.22% and trading at USD105.54 a barrel, up USD15.36 from its U.S. counterpart.

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