June Nymex crude oil is trading modestly lower Wednesday at $106.02, after posting a close on Tuesday at $106.16 the highest settlement seen since March 27. Prices have so far remained steady Wednesday, after some sharp gains were seen during U.S. trading hours yesterday after U.S. manufacturing growth in April registered its highest level in ten months, boosting the demand outlook for oil after recent data showed that the economy was losing its momentum. The closely watched index of national factory activity from the private Institute for Supply Management rose to 54.8 from a reading of 53.4 in March, beating expectations for a decline to 53.0. Ahead of weekly inventory reports, a rise of around 2.5mln barrels for crude, a sixth consecutive build, is forecast by analysts. Prices have been seen in a very tight range so far during the Asian session, with the market currently edging its way back higher to the best levels seen yesterday, where prices managed to elevate to $106.43 a barrel. $105.77 has held so far in Asia, with the market currently on session highs at $106.02 down 14 cents.
EasyForexNews Research Team