Some development has
been seen. The United State stocks fight ahead after several strong earnings
was reported on Wednesday, while European shares have come to 14-year high
following the European Central Bank loosed its policy stance.
WTI soared for more
than 5% in Wednesday after the US government data showed that the crude oil
inventories grew less than expected a week before. With the slight fall in US
oil production, it has showed that the rise of oil stockpiles was the smallest
rise this year. The 1.3 million barrels increasing in oil inventories below the
analyst 4.1 million estimation and was the smallest build since January 2.
WTI futures has
recorded 5.8 percent rise to $56.39 per barrel on Wednesday, the highest close
from December. Still, there is estimation that the oil price will have another
down-leg before climb higher in the second half of the year however, as an
analyst said, the case for price to rise is building and $56 was the level to
watch.
The ascend of price
beside of lower US oil production, speculation has growth around OPEC might
want to cut output at its June meeting and trader were also talking about the
implication of a report that Russia and OPEC were talking, though Russia
dismissed speculation that it would trim production. Russia has not cut back
output, even after OPEC's November decision to hold production steady sent
prices tumbling. Tensions in the Middle East have bolstered prices this week,
as fighting in Yemen continues to spook the market that it could become a
broader conflict.[1]
Meanwhile, better-than-expected
results have been heard from banks JPMorgan Chase and Wells Fargo and earnings
from Intel that were broadly in line with expectations boosted Wall Street.
First-quarter profits are seen falling 2.6 percent, largely due to weak energy
earnings, but the reduced expectations are helping companies clear a lowered
bar.[2]
note:
[1] source: http://www.cnbc.com/id/102589546