US Light oil trading higher, near $82 on Goldman, markets

20 April 2010 20 April 2010

BonTrade

US Light crude oil prices rose in Asian trading on Tuesday in a technical rebound after sharp losses in the previous two sessions, driven by news of Goldman Sachs fraud charges.

On the NYMEX, Light crude oil futures for May 2010 delivery traded at $82.14 a barrel at 0527 GMT, up 69 cents.

In New York at market close on Monday, the Dow Jones industrial average rose 0.7 percent to 11,092.05 as investors set aside some of their concerns about the government’s civil fraud charges against Goldman Sachs. The advance followed a drop of 126 points Friday when the SEC filed civil fraud charges against Goldman Sachs related to mortgage investments.

“Most of the Goldman Sachs news has been well digested for the time being,” said Jim Ritterbusch at Ritterbusch and Associates. Crude prices will likely consolidate today with a focus on tomorrow’s inventory data, he said.

US crude oil stocks could rise by 100,000 barrels this week while gasoline inventories may rise by 700,000 barrels, according to a Dow Jones Newswires survey.

“With momentum now leaning toward the downside, some bearish data could have more bite than has recently been the case,” Ritterbusch said.