On Wednesday crude oil prices rose recovering from sharp fall in the previous session, after strong Japanese GDP and as the consumer outlook in Australia seemed to brighten, driving producer hopes of increased demand.
Tensions off the coast of Yemen and an industry report signaling a potential decline in weekly U.S. crude inventories also supported the prices.
Light, sweet crude futures for delivery in July traded at $58.32 a
barrel, up $0.33 in the Globex electronic session.
July Brent crude rose $0.34 to $64.36 a barrel.
According to the official numbers, Japan's economy, the world's third largest, expanded at an annualized rate of 2.4 percent in the first quarter of this year, above a median market forecast for a 1.5 percent rise and following a revised 1.1 percent expansion in October-December.
Singapore-based brokerage Phillip Futures commented that growth in this region would definitely be favorable for crude demand, as the country is one of the major importers of crude.
In Australia, an important commodity employer and exporter, consumer sentiment surged in May as people's outlook on the economy brightened following this month's interest rate cut and after the government unveiled a budget that included a surprise tax break for small businesses.
Moreover, geopolitical issues also influenced oil prices. According to the information from Pentagon, two Iranian warships have linked up in the Gulf of Aden off Yemen’s coast with an Iranian vessel supposedly carrying humanitarian aid for civilians in Yemen.
Their presence has spurred worries that Iran may send the ship
directly to Yemen without agreeing to United Nations inspections,
potentially setting the stage for a showdown between Iran and the U.S.
and Saudi Arabian forces, as MarketWatch reported.
Separately, late Tuesday the American Petroleum Institute reported a
large 5.2 million barrel decline in U.S. oil inventories for last week.
Markets now await the more definitive inventory data from the U.S. Energy Information Administration.
