RTRS: Oil rises above $50, buoyed by equities, data
Oil prices climbed above $50 per barrel on Wednesday, supported by rising stock markets and a bigger-than-expected improvement in U.S. consumer confidence, despite concerns over the impact of a global flu crisis.
Investors shrugged off a bearish industry report on Tuesday showing a large build in U.S. crude stocks and instead looked ahead to figures due later from the U.S. Energy Information Administration and to economic data and equities for direction.
U.S. crude oil for June delivery rose 70 cents to $50.62 a barrel by 0911 GMT, paring earlier losses of as much 80 cents. London Brent crude was up 65 cents at $50.64 a barrel.
"Favorable macro news out of the United States in the form of improving consumer confidence readings and a moderation in the rate of decline in home prices were both constructive," MF Global Energy said in its daily report.
Stock markets bounced on Wednesday, reversing some of the previous session's losses. European stocks gained ground in early trade with the FTSEurofirst 300 index of top European shares up 0.5 percent at 805.48 points.
On Tuesday the European stock index lost 1.5 percent, hit by fears over the economic impact of the swine flu outbreak.
SHELL
Royal Dutch Shell gained 0.8 percent after outperforming analysts' forecasts, although it reported sharply lower first-quarter profits due to lower prices.
Speaking after the results, Shell's Chief Financial Officer, Peter Voser, said oil prices were unlikely to rise significantly in the next 12-18 months because of economic weakness.
"It will take time for the economy to recover, and hence the oil and gas price will be affected by that," said Voser.
But oil and stock markets were supported on Wednesday by U.S. data on Tuesday showing U.S. consumer confidence rose in April to its highest this year with some expectations the economic downturn may be reaching a bottom.
A separate report suggested the decline in U.S. home prices, the epicenter of the downturn, may be slowing.
Oil price slipped earlier after data on Tuesday showing U.S. crude stocks rose 4.6 million barrels in the week to April 24. The data from the American Petroleum Institute were more than double analysts' expectations for a 2.1 million-barrel increase.
The API report came ahead of the more authoritative U.S. Energy Information Administration, due at 1430 GMT.
New swine flu infections were found around the world on Tuesday and the specter of a pandemic hit the travel industry as governments warned people to stay away from Mexico where more than 150 people have died.
