Crude oil traded little changed near $56 a barrel after rising 4.6 percent yesterday on a smaller- than-expected increase in U.S. stockpiles and as equities advanced to a four-month high.
Crude supplies rose 605,000 barrels to 375.3 million last week, the highest since 1990, the Energy Department said yesterday. A 2.5 million-barrel gain was forecast by analysts surveyed by Bloomberg News. The Standard & Poor’s 500 Index added 1.7 percent to its highest close since Jan. 6. The Dow Jones Industrial Average rose 1.2 percent.
“The two major catalysts for driving the oil market higher were the EIA inventory report showing much lower builds than expected and the bullish move higher in the major stock indexes,†said Mike Sander, an investment adviser at Sander Capital Advisors Inc. in Seattle. “No matter what the news these days the trend is up.â€
Crude oil for June delivery fell 16 cents to $56.18 a barrel on the New York Mercantile Exchange at 10:41 a.m. in Sydney. Yesterday, the contract climbed $2.50 to settle at $56.34, the highest settlement since Nov. 14. Futures are up 26 percent this year.
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