Crude oil rose for a third day, climbing above $72 a barrel for the first time in seven months, after China’s net imports jumped to a 14-month high and US crude and gasoline stockpiles unexpectedly fell.
China, the world’s second-biggest energy user, increased its net crude purchases to 16.62 million metric tons in May, or 3.9 million barrels a day, according to data released by customs on its Web site on Thursday. Oil was also supported by a 4.38 million barrel drop in US stockpiles. “China’s oil import number should be seen in a positive light for the oil price,” said David Moore, a commodity strategist at Commonwealth Bank of Australia in Sydney.
“That’s pretty strong. I think that will be a supportive factor.”
Crude oil for July delivery gained as much as 85 cents, or 1.2 per cent, to $72.18 a barrel in after-hours electronic trading on the New York Mercantile Exchange and was at $71.63 in Singapore. Yesterday, the contract rose $1.32, or 1.9 per cent, to close at $71.33, the highest settlement since October 20.
US oil stockpiles dropped to 361.6 million in the week-ended June 5, the Energy Department said yesterday. Analysts surveyed by Bloomberg News said supplies would rise by 100,000 barrels. Gasoline inventories slipped for a seventh week.
China’s increase in net crude-oil imports in May was second only to a record of 16.9 million tons in March. Imports rose by 5 per cent to 17.09 million tonnes from a year earlier and exports stood at 470,000 tons, up from 150,000 tons last year.
China’s diesel market is showing signs of tight supply, Jin Anyao, the deputy head of PetroChina Co.’s sales department, said at a conference in Beijing on Thursday. China may import more than 50 per cent of its crude oil needs this year, he said.
China’s spending on factories, property and roads surged a more-than-estimated 32.9 percent from a year earlier, the statistics bureau said on Thursday, helping to drive a recovery in the world’s third-largest economy and drive up demand for fuel.
The Organization of Petroleum Exporting Countries will only consider increasing output when the price of crude rises to $100 a barrel, according to Kuwaiti Oil Minister Sheikh Ahmed al- Abdullah al-Sabah. OPEC is scheduled to meet on Septerber 9.
US fuel demand in the past four weeks averaged 18.3 million barrels a day, down 6.9 per cent from a year earlier, the Energy Department said. There was a 7.7 per cent deficit in the week-ended May 29. Gasoline use averaged 9.2 million barrels a day during the period, up 0.4 percent from a year ago.
Fuel imports to the US dropped 379,000 barrels a day to 2.55 million, the department said. Crude-oil imports slipped 676,000 barrels to 8.97 million.
Stockpiles of gasoline fell 1.55 million barrels to 201.6 million, the Energy Department report showed. A 750,000-barrel increase was forecast, according to the median of 14 estimates by analysts surveyed before Thursday’s report.
“The big news last night was the bigger than expected decline in stockpiles,” said Toby Hassall, a research analyst at Commodity Warrants Australia Pty in Sydney. “That’s somewhat of a fundamental justification for this rally continuing in the short term.”
Gasoline supplies last week were 3.9 per cent below the five-year average for the period, according to the department. There was a 13 percent surplus in the week ended May 22.
Gasoline for July delivery gained 1.47 cents, or 0.7 per cent, to $2.03 a gallon at 3:34 p.m. in Singapore. Yesterday, it rose 4.86 cents, or 2.5 percent, to $2.0153 a gallon in New York, the highest close since Oct. 9.
Brent crude for July delivery rose as much as 75 cents, or 1.1 per cent, to $71.55 on London’s ICE Futures Europe exchange. The contract was at $71.08 a barrel in Singapore. Yesterday, it settled at $70.80, the highest since October 20.
