PERTH, May 21: U.S. Crude futures eased to about $96.50 a barrel in early trading in Asia on Tuesday as ample supplies weighed on prices, despite support from equity markets.
FUNDAMENTALS
* U.S. Oil fell 14 cents to $96.57 a barrel by 0023 GMT, after ending 69 cents higher in the previous session.
* Brent rose 5 cents to $104.85 a barrel.
* The International Energy Agency expects weaker demand growth for oil in 2013, along with higher supply.
* Commercial domestic stockpiles of crude hit 395.5 million barrels in the week to May 3, and although they have since eased, inventories remain high. Stockpiles likely fell for a second consecutive week on higher refinery activity and lower imports, a preliminary Reuters poll of seven analysts showed on Monday.
* Markets are also waiting to see what the U.S. Federal Reserve will do with its monetary policy. A strengthening labour market could prompt the Fed to end its bond buying programs early, which would support a stronger dollar, analysts said, meaning weaker oil prices.
* Lebanese Hezbollah guerrillas have fought their biggest battle yet for Syria’s beleaguered president, prompting international alarm that the civil war may spread and an urgent call for restraint from the United States.
MARKETS NEWS
* U.S. Stocks ended little changed on Monday, with indexes hovering near record levels as concerns about a correction cut earlier gains that had been prompted by news about a flurry of acquisitions.
* The dollar fell against the euro and yen on Monday as traders pared back expectations Federal Reserve Chairman Ben Bernanke would hint at tapering U.S. Bond purchases this week.
DATA/EVENTS
* The following data is expected on Monday:
0600 Germany Producer prices
1145 U.S. ICSC weekly chain store sales
1255 U.S. Redbook weekly retail sales
2030 U.S. API weekly crude stocks
(AGENCIES)
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