Crude rebounds to hover at 31-month high

27-Apr-11

Crude on the Nymex for June delivery rose to US$112.4 while Brent crude for June settlement on the London-based ICE Futures Europe exchange rose at US$124.1. Crude oil prices have rebounded to trade near a 31 month high, on news of advancing US equity-index futures after company earnings reports exceeded analyst estimates. The Standard & Poor’s 500 Index gained as much as 0.5%, after companies including United Parcel Service Inc. and Ford Motor Co. reported higher-than-estimated earnings. As per Bloomberg, Brent traded at a premium of US$11.71 a barrel to New York futures, shrinking from US$13.05 a week earlier after supplies fell at Cushing, Oklahoma, the delivery point for U.S. contracts. Stockpiles at Cushing dropped by 770,000 barrels to 41.1 mln in the week ended April 15, according to the Energy Department. Crude stockpiles nationwide fell 2.32 mln barrels to 357 mln, the first drop since February.