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Crude oil prices perk up on U.S stockpile hopes

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Oil is rebounding today from the lowest price in almost a week as investors bet that fuel demand may increase amid signs the U.S. and Chinese economies are strengthening.

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What do you do into the June OPEC meeting? What happens when they cut? Supply disruption issues remain out there globally despite the fundamentally over-supplied current state. The world will still consume 94m barrels of oil next year and probably 100m by 2018.

China's slowdown in industrial production in the first two months of the year was due to seasonality and government controls, said a spokesman for Beijing. Brent crude ( BNO , quote ) fell lower as U.S. gasoline inventories were predicted to fall by 1 million last week.

Distillate supplies, including diesel and heating oil dropped 1.4 million barrels and crude stockpiles rose 1.9 million.

Oman's Oil Minister Mohammed Al-Rumhy said yesterday that oil prices are "a bit high."

In any event, U.S. exports of gasoline, diesel and other fuels will more than double in the next three years as refiners take advantage of a growing supply of domestic crude and ship more fuel to emerging markets.

Exports are currently expected to rise by 450,000 barrels a day by 2015 as domestic demand shrinks and more products are sent to Latin America, Africa and other regions where fuel use is rising.

by Simon Watkins for Emerging Money

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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