Oil steady after EIA data

25/06/2009

Crude oil prices rose in electronic trading on the New York Mercantile Exchange (Nymex) this morning (June 25th) as investors in the east reacted to the latest weekly demand data from the Energy Information Administration (EIA).

Figures from the group showed that crude inventories in the US were down 3.8 million barrels week-over-week by June 19th, although stocks of gasoline, propane and distillates such as heating oil all rose during the period.

By 05:08 Eastern Time, the August delivery Nymex crude contract was trading at $69.24 (£42.45) a barrel, up 57 cents on yesterday's settle price.

Speaking to the Associated Press, David Moore, commodity strategist at Commonwealth Bank of Australia in Sydney, said a recovery in demand for crude and other products such as heating oil is likely to take some time in coming.

"While there's some optimism that the worst is probably past, the upturn will possibly be slower than has been factored into the oil," he said.