Publications
Partners
Singapore - Brent crude futures held steady above $118 on
Wednesday as concerns on the eurozone crisis eased after a successful Spanish
debt auction and a better growth forecast from the International Monetary Fund.
The IMF offered a cautiously optimistic view on global
growth, which it said is slowly improving as the US recovery gains traction and
dangers from Europe recede.
While the eurozone will suffer a mild recession, the IMF
said it would be less severe than feared after moves to calm markets at the
turn of year.
Brent June crude had slipped 6 cents to $118.72 a barrel
by 03:15 GMT, after settling higher at $118.78 in the previous session.
US May crude gained 15 cents to $104.35, after settling at
its highest close since April 2. The May contract expires on Friday.
"Traders’ risk appetite improved after the successful debt
auction, IMF increasing global growth forecast and good data from Germany,”
said Natalie Robertson, an analyst at ANZ.
"Going forward, the crude market will trade sideways with a
potential increase in demand in July once the refineries are back from
maintenance."
Spanish bond yields, which have surged in recent days on
concerns about the country’s economy, eased back as Tuesday’s
better-than-expected bill sale brightened the mood.
Also boosting sentiment, a survey in Germany, Europe’s
biggest economy, showed an unexpected rise in analyst and investor confidence
in April.
Brent’s premium to US crude narrowed to below $14 a barrel
as investors continued to price in Monday’s news that the Seaway pipeline’s crude
oil flow will be turned around towards the Gulf Coast as early as mid-May.
This will likely help to alleviate a supply glut in the United States, with crude oil stocks rising more than expected to 3.4 million barrels, a weekly report from industry group the American Petroleum Institute showed.
