U.S. crude headed for a five-percent weekly gain after government statistics showed robust U.S. demand growth and falling inventories, while pos itive economic indicators lifted sentiment across markets.
IN FOCUS
- China's net imports of fuel also jumped in June, more than doubling from May to 1.16 million tonnes. But customs gave no breakdown for different fuels, leaving an impression of rising demand but little scope for more detailed analysis.
- BP Plc said on Sunday it is making progress on a new system to capture almost all the oil spewing from its blown-out well in the Gulf of Mexico and a relief well could finally plug the leak by early to mid-August.
- Saudi Arabia, the world's top crude expor ter, will supply full contracted volumes of crude oil in August to at least two Asian term buyers, steady with July levels, industry sources said on Monday.
- The U.S. Energy Information Administration on Wednesday said it expected domestic natural gas production to rise by 2.1 percent in 2010, in line with previous estimates.
FUNDAMENTAL OUTLOOK
Crude oil is trading sideways to up today on optimism about oil demand, after China's trade surplus in June, easing worries about a slowdown in the global economic recovery. Our outlook for Crude remains bullish, buying at every dip is recommended.
