WSJ:Crude Futures Cautiously up, Awaiting Direction
By CASSIE WERBER
Brent prices, which took a hit Wednesday and ended trading at a year-to-date low, were up slightly Thursday, but from a low base.
At 1041 GMT, the May Brent contract on London's ICE futures exchange was at $107.19, up 24 cents, or 0.0.22%. Nymex light, sweet crude for May delivery was down 5 cents, or 0.05%, at $94.40 a barrel.
Wednesday's close followed a sharp drop of 3.2% a barrel, and Brent settled at $107.11 a barrel, "the lowest figure since December," according to JBC Markets analysts. They put the selloff down to "weak U.S. jobs data and a bearish U.S. inventory report."
The Energy Information Administration's report Wednesday showed that stocks were high in the U.S.
Andrey Kryuchenkov, analyst at VTB Capital, said the outlook over the coming month is bearish, evidenced by the price of crude in the spot market.
"Short-term supplies are plentiful, whic-h is reflected in easing wet barrel premiums in the North Sea lately," he wrote.
However, some speculators suggest that crude could be set for a sharp upward move in the coming weeks. Analysts at Global Risk Management said the recent divergence between crude stocks and the financial markets shouldn't be ignored, and there are potential geopolitical wild cards to be played in Iran and Venezuela.
Global Risk also said attention will be focused on the European Central Bank's press conference and Mario Draghi's comments Thursday. The ECB is due to hold a press conference on its monetary policy at 1330 GMT Thursday.
Commerzbank AG CBK.XE +2.55% analysts said they "regard the market's price reaction to the inventory data to be exaggerated."
"Nonetheless, the oil market will remain under pressure in the short term," they added.
As the week draws to a close, the market will be watching for U.S. nonfarm payroll data for March, due at 1230 GMT Friday.
At 1042 GMT, the ICE's gasoil contract for April delivery was down $8.75, or 0.96%, at $904.25 a metric ton, while Nymex gasoline for May delivery was down 214 points, or 0.73%, at $2.8926 a gallon.
