Current Oil Price in Asian Trading Lifted by Japanese Equities

The current oil price was up in Asian trading, lifted by strong equities in Japan as the market got better from a weak U.S. employment report, said analysts.

On the NYMEX, the U.S. benchmark for May delivery gained 14 cents to a crude price per barrel of $92.84, while Brent crude for delivery in May moved 32 cents higher to $104.44 per barrel.

The crude market is coordinating with the movement of the stock market of Japan. Moreover, oil is recuperating from the selling following the employment report of the U.S., said Managing Director Victor Shum of Singapore’s HIS Purvin and Gertz.

Japanese stocks increased three percent during opening trading as the yen further dropped after the Bank of Japan initiated new QE measures during the past week.

Investors are happy with the weakening Japanese currency and its clear impact on corporate revenues in the future, said market analysts.

The Bank of Japan recently started a new period of huge expenditure by infusing so-called “easy money,” marking its most aggressive effort to pull the economy of Japan out of many years of serious deflation.

However, a recently released U.S. employment report that did not meet the expectations of the market kept on affecting sentiment.

According to the Labor Department, the U.S. only added 88,000 jobs last March. The unemployment rate fell from February’s 7.7 percent to 7.6 percent, but only due to individuals leaving the workforce.

The recent increase in the price of oil must be carefully viewed as the recent employment data signifies that the economy of the U.S. may be coming to a soft patch of sluggish recovery, said Shum.

The condition of the U.S. economy, as the biggest consumer of oil in the world, impacts the prices of global crude.

By: Chris Termeer

Chris Termeer

Chris Termeer is an oil and gas consultant, industry commentator and analyst. His book, Fundamentals of Investing in Oil and Gas provides a comprehensive overview of all aspects of the oil and gas industry, including exploration, drilling, production, storage, transportation and refining, to name but a few.

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