Crude futures higher on bullish API data, trade deal optimism

Singapore — 0230 GMT: Crude oil futures were higher during mid-morning trade in Asia Thursday amid a bullish report on last week's US crude inventory, while lackluster trade activity amid year-end holidays could limit price volatility, analysts said.

At 10:30 am Singapore time (0230 GMT), the front month March ICE Brent crude futures rose 26 cents/b (0.39%) from Tuesday's settle to $66.26/b, while the NYMEX February light sweet crude contract was 25 cents/b (0.41%) higher at $61.31/b.

According to analysts reports quoting data released by the American Petroleum Institute released Tuesday, US crude inventories for the week ended December 27 fell 7.8 million barrels.

Analysts surveyed Monday by S&P Global Platts were looking for US crude stocks to have declined 3.1 million barrels last week.

US gasoline inventories were down 776,000 barrels last week, analysts quoting the API report said.

"Gasoline draw signals good demand and great travel for the holiday," The PRICE Futures Group's senior market analyst Phil Flynn said in a note.

The definitive data on last week's US inventory report is due for release from the US Energy Information Administration later Friday.

Some optimism for international markers also emerged from the latest update on the US-China phase-one trade deal, with both economies agreeing to sign the deal in mid-January.

US President Donald Trump on Tuesday took to twitter to say that the US and China will be signing a "very large and comprehensive deal" on January 15.

"Positive news across both US-China trade and China's liquidity injection kick starts the new year, though with the holiday-shortened week, lackluster trade may well sustain for Asia markets into the end of the week," IG's market strategist Pan Jingyi said.

As of 0230 GMT, the US Dollar Index was down 0.01% at 96.14.

--Avantika Ramesh, avantika.ramesh@spglobal.com

--Edited by Norazlina Juma'at, norazlina.jumaat@spglobal.com