Crude Oil and Natural Gas Trading In The Green

                                             WTI crude oil closed up 24 cents at $96.58 a barrel, up by 0.25% yesterday. Crude oil futures staged a modest rebound from earlier losses, clawing back above $96 per barrel to extend gains for the fourth session in a row, as recent signs of economic recovery bode well for demand prospects. Crude remains flat after the Asian session today. Crude prices were supported on optimism that US economy is recovering which would improve the demand prospects for crude. However the upside was limited due to a stronger dollar which is trading new a record high of 83.40 this morning and higher inventories which came at 3.3M. The U.S. Energy Information Administration reported a climb in crude supplies that was about double market expectations. Crude supplies rose 3.3 million barrels for the week ended March 22. Analysts expected a 1.6 million-barrel climb. Motor gasoline supplies fell by 1.6 million barrels, matching analysts’ expectations, while distillate stockpiles declined by 4.5 million barrels, compared with forecasts for a decline of 700,000 barrels in distillate supplies.

Traders can expect crude prices to go slightly up as loose monetary policies by US and Japan is likely to support prices. Assurances from the new head of the Bank of Japan that he would push through more stimulus and new programs at next week’s meeting helped support oil prices.

Japan’s oil imports from Iran rose 15.9 percent in February from a year ago to the highest in eleven months, customs cleared data showed on Thursday, a rare increase from one of the major buyers of crude from sanctions-hit Iran.

Oil rises in Asia following U.S. inventory data

         Crude Oil futures are trading modestly higher during Thursday’s Asian session, rebounding from a small loss in Wednesday U.S. session at the hands of the weekly inventory data. 

On the New York Mercantile Exchange, light, sweet crude futures for May delivery are up 0.10% at USD96.67 per barrel in Asian trading Thursday after settling down 0.31% at USD96.04 a barrel on Wednesday in the U.S. 

The U.S. Energy Information Administration reported earlier that U.S. crude oil inventories rose by 3.256 million barrels last week after falling by 1.314 million barrels in the week before last. Analysts were expecting oil inventories to rise by only 705,000 last week.

Gasoline inventories, meanwhile, fell by 1.596 million barrels compared to a drop of 1.476 million barrels in the preceding week. Analysts were calling for gasoline inventories to fall by 1.020 million last week. 

In U.S. economic news, the National Association of Realtors said pending home sales fell 0.4% in February from January, but added the number increased 8.4% on a year-over-year basis. Despite trading lower today in Asia, gold is on track for gain of better than 1.5% this month. 

Also on Wednesday, Citigroup published a report saying it expects oil demand will peak before the current decade is over. The bank also slashed its price forecast on Brent crude to USD80 to USD90. 

Elsewhere, the Nigerian National Oil Spill Detection and Response Agency and the Nigerian Maritime Administration and Safety Agency are seeking a combined USD11.5 billion in fines from Royal Dutch Shell, Europe’s largest oil company, related to an oil spill at its offshore Bonga field in December 2011. Shell says there is no basis for the claims. 

Brazil’s Petrobras, that country’s state-run oil giant, said it will sell two offshore fields in Nigeria as part of its plan to sell USD9.9 billion worth of assets this year. 

Meanwhile Brent crude futures for May delivery rose 0.09% to USD109.84 per barrel on the ICE Futures Exchange. - Investing.com

Natural Gas gains as weather forecasts point to a chilly start to April

                   Natural gas futures jumped up in afternoon trading on Wednesday, just shy of 18-month highs hit earlier after weather models indicated the temperatures in the first week of April will remain below normal.

On the New York Mercantile Exchange, natural gas futures for delivery in May traded at USD4.087 per million British thermal units, up 2.39%.

The commodity hit a session low of USD3.983 and a high of USD4.101.

Weather forecasting models that called for a chilly end to March extended their frigid forecasts to early April.

MDA Weather Services, for example, predicted below-normal temperatures to stick around over a large portion of the eastern half of the United States through April 10, which pushed up natural gas prices to near 18-month highs.

Markets were eagerly waiting official supply data due for release on Thursday, and hopes were high for more bullish supply data than in last week's report.