Crude rises above $76 due to expected rise in demand despite mixed economic signs
Crude rose above $76 per barrel today following the optimistic wave supported by an evident improvement in investors' risk appetite, while at the same time Asian stock markets rose due to the Chinese government's efforts in expanding their economy. In addition, demand, according to forecasts, on crude in the US have increased last week and therefore reflecting improving fuel demand. Crude today traded around $76 per barrel recording its highest around $77.39 and lowest around $76.72, while it currently is trading around $77.21 per barrel. The gain crude is witnessing followed rising Chinese stocks for the second consecutive day, where strengthening domestic consumption pushed automakers' earnings. This optimistic data reflect China's economic growth, which baffles onlookers since strong Chinese demand growth has been considered to be steady within the oil market, where the worst global recession witnessed in 70 years did not harm Chinese growth and consumption patterns. Crude yesterday traded around $75.55 per barrel recording its highest around $75.95 and lowest around $75.42 per barrel, closing around $76.80 per barrel. It managed to record a rise of $0.53 by 0.7% due to positive sentiment in stock markets and expected US inventories decline. Moreover, today we await the for the release of US crude inventories status where API is expected to report 1 MB drop according to median estimates for the fourth consecutive time, while gasoline inventories are expected to rise by 1 MB and thereby supporting crude's ongoing climb. Meanwhile, investors maintain their focus on the US economy and the prospects for the recovery, especially the mixed data recently been reported during the second quarter. As for NYMEX as of 04:45 EST; motor gasoline rose to $206.860 per gallon by $0.047; heating is trading around $202.370 per gallon gaining by $0.033; whereas natural gasoline gained $0.04 per 1000 cubic feet by $4.521. In London, Brent futures rose by $0.21 to record $75.780.
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