Crude Rebounds From One-Month Low With U.S. Stocks Advancing

June 3, 2013 10:00 AM

June 3 (Bloomberg) -- West Texas Intermediate crude rose from the lowest level in one month as U.S. stocks rebounded and the dollar weakened against a basket of major currencies.

Prices gained as much as 1.3 percent as the Standard & Poor’s 500 Index advanced from a three-week low. The Dollar Index fell, raising dollar-denominated oil’s investment appeal. Oil slipped earlier as a Chinese manufacturing index showed small business struggling.

"Financial markets are higher today and oil seems to want to head right back to $94," said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. "The market is shrugging off China’s manufacturing data."

WTI crude for July delivery gained 70 cents, or 0.8 percent, to $92.67 a barrel at 9:31 a.m. on the New York Mercantile Exchange. The volume of all futures traded was 4.7 percent below the 100-day average for the time of day. The futures ended at $91.97 on May 31, the lowest settlement since May 1. Prices slid 1.6 percent in May.

Brent oil for July settlement rose $1.14, or 1.1 percent, to $101.53 a barrel on the London-based ICE Futures Europe exchange after closing May 31 at the lowest settlement since May 1. Volume for all contracts was 31 percent above the 100-day average.


Dollar Index


The S&P 500 rose 0.2 percent after falling to 1,630.74 on May 31, the lowest closing since May 9. The Dollar Index, which tracks the U.S. currency against those of six major trading partners, fell as much as 0.5 percent.

Manufacturing in the U.S. probably made little progress in May, economists surveyed by Bloomberg said before a report expected at 10 a.m. The median forecast for the Institute for Supply Management’s factory index was 51.

Oil dropped as much as 0.8 percent earlier as China’s official Purchasing Managers’ Index for smaller companies fell to 47.3 in May from 47.6 the previous month, even as the broader gauge rose to 50.8 from 50.6.

JPMorgan cut its forecast for Brent to an average of $113 a barrel in the third quarter, from $120 previously, according to a May 31 report received by e-mail today. The bank reduced its outlook for the three months ended December to $117, from $120, and for 2014 to $117.50, from $122.50. JPMorgan cited demand weakness in Europe and emerging markets and growing non-OPEC supply.


--Editors: Richard Stubbe, David Marino


To contact the reporter on this story: Moming Zhou in New York at


To contact the editor responsible for this story: Dan Stets at


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