Crude Oil Ends Above $100 On Upbeat China Data

(RTTNews) - U.S. crude oil ended at a six-week high Wednesday, after some strong economic data from China, even as a report from the Energy Information Administration showed crude stockpiles in the U.S. to have increased more than expected while gasoline inventories dipped unexpectedly last week.

Earlier today, data from the Energy Information Administration revealed US crude oil inventories to have moved up 3.3 million barrels, while gasoline stocks dropped an unexpected 0.7 million barrels in the week ended February 7. Analysts expected crude oil inventories to gain 2.5 million barrels last week, with gasoline stocks were anticipated to come in unchanged.

The U.S. Energy Information Administration on Tuesday lowered its forecast for U.S. oil-production growth in 2014 and 2015, but raised its expectations for the country's demand.

Meanwhile, Organization of the Petroleum Exporting Countries in its monthly report indicated global oil demand to grow at a faster pace than previously anticipated in 2014. It is now estimated to grow about 1.09 million barrels a day, an increase of 45,000 barrels per day, from the earlier outlook. Oil demand is anticipated at 90.98 million barrels per day for 2014.

China's trade surplus increased with export and import growth accelerating unexpectedly at the start of the year, defying expectations that the second largest economy in the world is set for a slowdown in early 2014.

Light Sweet Crude Oil futures for March delivery, the most actively traded contract, gained $0.43 or 0.4 percent to close at $100.37 a barrel on the New York Mercantile Exchange Wednesday.

Crude prices for March delivery scaled a high of $101.38 a barrel intraday and a low of $100.04.

Late Tuesday, data from the American Petroleum Institute showed crude stocks at the key U.S. delivery hub in Cushing, Oklahoma fell by 2.5 million barrels in the week to February 7.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 80.70 on Wednesday, up from its previous close of 80.62 late Tuesday in North American trade. The dollar scaled a high of 80.83 intraday and a low of 80.49.

The euro traded lower against the dollar at $1.3593 on Wednesday, as compared to its previous close of $1.3638 late Tuesday in North America. The euro scaled a high of $1.3652 intraday and a low of $1.3564.

In economic news, China's trade surplus increased to $31.9 billion in January from $25.6 billion a month ago, data from the General Administration of Customs showed Wednesday. Export shipments surged 10.6 percent in January from last year. Analysts expected exports to rise 0.1 percent after expanding 4.3 percent in December. Imports advanced 10 percent versus 8.3 percent growth in December and the 4 percent growth forecast by economists.

The Bank of England on Wednesday hinted that the interest rates are unlikely to rise anytime soon even as the unemployment rate fell faster than estimated in August. In its quarterly Inflation Report, the BoE's Monetary Policy Committee suggested that the interest rate is set to rise only in the second quarter of 2015, in line with current market expectations. The bank estimates that the unemployment rate has fallen to the 7 percent threshold in January this year.