Singapore - Crude oil futures pushed higher Wednesday in Asia as the dollar declined, while sentiment was also supported ahead of weekly U.S. government oil data.
While U.S. crude stockpiles have risen steadily to multiyear highs, a separate report from the American Petroleum Institute industry group late Tuesday showed an unexpectedly steep drawdown last week, alongside declines in product inventories, putting traders on the defensive.
"This week's API report was the most bullish report seen in a very long time. That makes today's (Energy Information Administration) report critical," said Peter Beutel, president at trading advisory firm Cameron Hanover.
On the New York Mercantile Exchange, light sweet crude futures for delivery in June traded at $59.78 a barrel at 0655 GMT, up 93 cents or 1.6% in the Globex electronic session.
Nymex heating oil for June climbed 196 points to 152.66 cents a gallon, while June reformulated gasoline blendstock traded at 169.33 cents, 254 points higher.
Nymex crude overnight spiked above the psychologically important $60-a-barrel mark for the first time since Nov. 11, as traders bet the approach of summer would lift gasoline consumption and tighten the market.
While U.S. crude stockpiles have climbed nine straight weeks to their highest since 1990, the country's gasoline stocks are comparable with year-ago levels, suggesting demand - while still weak - is still matching supply.
The dollar's decline Wednesday against the euro and the yen also shored up buying interest in dollar-denominated commodities, including oil and gold.
The EIA, a unit of the Department of Energy, is expected to report across-the-board builds in U.S. crude and product stockpiles.
Commercially held crude inventories are expected to have climbed 1.3 million barrels in the week to May 8, according to the average prediction from 15 analysts polled by Dow Jones Newswires.
Gasoline stockpiles were probably unchanged on week while distillates, including heating oil and diesel, may have risen 1.3 million barrels, the survey showed.
The average refinery run rate was seen 0.1 percentage point up from 85.3% of capacity previously.
The EIA's Weekly Petroleum Status Report is due at 1430 GMT.
The API, apart from the crude stockdraw, also reported gasoline stocks declining 2 million barrels, as well as a 1.8 million-barrel drop in distillates.
"While additional price gains are difficult to justify based on pure fundamental analysis, we are still leaving open the possibility of some additional near-term price strength," Jim Ritterbusch at Ritterbusch and Associates said in a note to clients.
"We would caution against selling this market at the present time and we will evaluate a trading stance in light of the market's response to the EIA report."
Later Wednesday, the Organization of Petroleum Exporting Countries will release its monthly report, potentially offering some hints of its thinking ahead of a policy meeting May 28.
The Middle East-dominated, 12-member group pumps 40% of the world's crude.
At 0655 GMT, oil prices on London's ICE Futures exchange also rose.
Brent crude for June, which expires Thursday, was up 94 cents at $58.88 a barrel, while June gasoil changed hands at $490.75 a metric ton, chalking up $7.50 from Tuesday's settlement.
Source: COMMODITIESCONTROL
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