SINGAPORE (Reuters) - Brent crude rose to $122 a barrel on Wednesday as a rebound in equities and a larger than expected draw on U.S. oil product stocks helped ease fears within eroding demand.
Asian stocks rose in early trade subsequent to a rebound on Wall Street and in Europe on upbeat corporate results out of speculative bank Goldman Sachs and healthcare establishment Johnson & Johnson.
"Last week we saw select disappointing consequences in tech shares as Google, but the Goldman Sachs earnings got better than expected and that resulted in a reversal in chance appetite, that is excellent for commodities," assumed Serene Lim, a commodities analyst amid ANZ Bank in Singapore.
ICE Brent crude for June gained 57 cents to $121.92 a barrel by 0305 GMT, after touching $122 earlier. U.S. crude was up 65 cents at $108.93 a barrel.
The dollar index, measuring the greenback against a basket of currencies, extended its losses once enduring euro zone economic info helped the euro rebound against the dollar.
A weaker dollar can lift oil expense by making dollar-denominated crude less pricey for consumers paying off other currencies and by drawing investment away according to foreign exchange markets seeking out better returns.
U.S. Treasury Secretary Timothy Geithner, happening on the offensive one day after Standard & Poor's threatened to lower its top-tier display on U.S. authorities debt, said on Tuesday there was "no risk" of a downgrade, and prospects for a deficit-reduction deal got improving.
U.S. OIL DATA
U.S. crude oil stocks rose 667,000 barrels last week, the industry bunch American Petroleum Institute said in its weekly inventory prediction released late on Tuesday.
Gasoline stocks fell 1.8 million barrels and distillate stocks fallen off 3.4 million barrels, falling unexpectedly, according to the API.
Ahead of the API report, a Reuters survey of real estate analysts yielded a projection for crude oil stocks to be up 1.1 million barrels. Gasoline stocks were seen down 1.5 million barrels and distillate stocks were forecast to be unchanged.
"The API numbers were rather bullish, and set a good platform for the oil data out of the U.S. tonight to improve prices," believed Lim.
The U.S. Energy Information Administration 's weekly data will follow on Wednesday at 1430 GMT.
EURO ZONE, MIDDLE EAST CONCERNS PERSIST
Oil values were able to come short of pressure from lingering admonishments within a would&wshyp;be Greek arrears restructuring that could further strain the euro zone, additonally threats to Africa and Middle East oil supplies who helped lift oil to recent 32-month peaks continue to unnerve markets.
Spain might sell up to 3.5 billion euros in bonds on Wednesday in an auction so if find clues on whether the country can avoid the bailout contagion that engulfed the that much less economies of Greece, Ireland and Portugal.
Tensions escalated in the Middle East once Yemeni police opened fire on protesters in Sanaa and Taiz on Tuesday, killing at the very least 3 people, as protesters tried to step up this campaign to end President Ali Abdullah Saleh's 32-year rule.
In Syria , forces loyal to Muammar Gaddafi renewed the bombardment of Misrata, causing many casualties, an Amnesty International researcher in the besieged Libyan city said.
Read more here
Asian stocks rose in early trade subsequent to a rebound on Wall Street and in Europe on upbeat corporate results out of speculative bank Goldman Sachs and healthcare establishment Johnson & Johnson.
"Last week we saw select disappointing consequences in tech shares as Google, but the Goldman Sachs earnings got better than expected and that resulted in a reversal in chance appetite, that is excellent for commodities," assumed Serene Lim, a commodities analyst amid ANZ Bank in Singapore.
ICE Brent crude for June gained 57 cents to $121.92 a barrel by 0305 GMT, after touching $122 earlier. U.S. crude was up 65 cents at $108.93 a barrel.
The dollar index, measuring the greenback against a basket of currencies, extended its losses once enduring euro zone economic info helped the euro rebound against the dollar.
A weaker dollar can lift oil expense by making dollar-denominated crude less pricey for consumers paying off other currencies and by drawing investment away according to foreign exchange markets seeking out better returns.
U.S. Treasury Secretary Timothy Geithner, happening on the offensive one day after Standard & Poor's threatened to lower its top-tier display on U.S. authorities debt, said on Tuesday there was "no risk" of a downgrade, and prospects for a deficit-reduction deal got improving.
U.S. OIL DATA
U.S. crude oil stocks rose 667,000 barrels last week, the industry bunch American Petroleum Institute said in its weekly inventory prediction released late on Tuesday.
Gasoline stocks fell 1.8 million barrels and distillate stocks fallen off 3.4 million barrels, falling unexpectedly, according to the API.
Ahead of the API report, a Reuters survey of real estate analysts yielded a projection for crude oil stocks to be up 1.1 million barrels. Gasoline stocks were seen down 1.5 million barrels and distillate stocks were forecast to be unchanged.
"The API numbers were rather bullish, and set a good platform for the oil data out of the U.S. tonight to improve prices," believed Lim.
The U.S. Energy Information Administration 's weekly data will follow on Wednesday at 1430 GMT.
EURO ZONE, MIDDLE EAST CONCERNS PERSIST
Oil values were able to come short of pressure from lingering admonishments within a would&wshyp;be Greek arrears restructuring that could further strain the euro zone, additonally threats to Africa and Middle East oil supplies who helped lift oil to recent 32-month peaks continue to unnerve markets.
Spain might sell up to 3.5 billion euros in bonds on Wednesday in an auction so if find clues on whether the country can avoid the bailout contagion that engulfed the that much less economies of Greece, Ireland and Portugal.
Tensions escalated in the Middle East once Yemeni police opened fire on protesters in Sanaa and Taiz on Tuesday, killing at the very least 3 people, as protesters tried to step up this campaign to end President Ali Abdullah Saleh's 32-year rule.
In Syria , forces loyal to Muammar Gaddafi renewed the bombardment of Misrata, causing many casualties, an Amnesty International researcher in the besieged Libyan city said.
Read more here
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