As confidence in Europe’s economic recovery prospects were offset by signs of accumulating crude supplies in the U.S., Oil traded near it’s lowest in a week.
Oil pared earlier losses as a bailout for Portugal was endorsed by European finance officials, which caused the dollar to weaken against the euro and spurring demand for assets priced in the greenback. Speculation is that an Energy Department report tomorrow will show U.S. crude inventories have climbed to a two-year high.
“The concerns about economic growth and the heavy selling this triggered on the commodities market were overdone,” said Eliane Tanner, a Bank Sarasin & Cie. analyst in Zurich. “Our outlook on oil prices remains positive in the longer term.”
Crude for June delivery on the New York Mercantile Exchange was at $97.36 a barrel, down 1 cent, at 12:15 p.m. London time, after earlier sliding to $96.61. It fell 2.3 percent yesterday to $97.37, Prices have risen 39 percent in the past year.
Brent oil for July settlement was at $111.21 a barrel, up 37 cents, on the London-based ICE Futures Europe exchange. The June contract expired yesterday, losing $1.10 to $112.73.
According to an official at a unit of the nation’s biggest crude producer, Chinese oil demand growth may slow this year, with a rise of 6.7 percent, slowing from the 9.6 percent growth in 2010.
Chinese oil demand growth may slow this year, according to an official at a unit of the nation’s biggest crude producer. Demand may rise 6.7 percent, slowing from 9.6 percent growth in 2010, Zhang Fuqin, deputy chief engineer at China National Petroleum Corp.’s petroleum and petrochemical engineering institute, said at a conference in Tianjin today.