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Oil prices rose in Asian trade today ahead of the US Department of Energy’s crude stockpiles report and a testimony in Congress by Federal Reserve chief Janet Yellen.
The US benchmark, West Texas Intermediate (WTI) crude for June delivery, gained 55 cents to $100.05 a barrel in mid-morning trade, while Brent North Sea crude for June delivery rose 24 cents to $107.30.
Analysts expect a report on US crude supplies to be released later today to show an increase, which would suggest weak demand in the world’s top oil consuming nation.
Yellen is also scheduled to testify before a joint committee in the US Congress later in the day and traders will focus on her assessment of the health of the US economy.
Dutch bank ABN-AMRO said in a note that it expects Yellen to reiterate the message that the Federal Reserve “was becoming more optimistic about the strength of the economy, after the winter slump in the beginning of the year’’.
The crisis in Ukraine, a major conduit for Russian oil and gas exports to Europe, also kept prices supported, analysts said.
Russia had rejected a new peace initiative yesterday as fears of open war mounted in the former Soviet state, where government forces are battling Moscow-backed separatist militias.
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