Crude Oil Ends Higher On Ukraine Concerns

(RTTNews) - U.S. crude oil jumped to end at a five-week high on Wednesday, amid concerns about possible supply disruptions due to the ongoing conflict in Ukraine and with the dollar weakening against some major currencies. Investors largely ignored the more-than-expected jump in the official crude oil stockpiles in the U.S. last week, with news reports from Libya suggesting the reopening of its ports may be further delayed.

Earlier today, data from the Energy Information Administration revealed U.S. crude oil inventories to have jumped by 4.0 million barrels in the week ended April 4, while analysts expected an increase of 2.5 million barrels.

However, gasoline stocks plunged by 5.2 million barrels last week, with analysts anticipating a decline of 1.3 million barrels. Inventories of distillate, including heating fuel, rose by 0.8 million barrels, even as analysts predicted a decline of 0.8 million barrels.

Light Sweet Crude Oil futures for May delivery, the most actively traded contract, jumped $1.04 or 1.0 percent to close at $103.60 a barrel on the New York Mercantile Exchange Wednesday.

Crude prices for May delivery scaled a high of $103.77 a barrel intraday and a low of $102.03.

Yesterday, crude oil surged to a one-month high, the highest level since March 7, to top $102 a barrel as investors continued to fear disruptions in supply from Russia due to tensions over Ukraine with the dollar trending lower against some major currencies.

On Tuesday, data from the American Petroleum Institute showed U.S. oil inventories to have risen 7.1 million barrels during the week ended April 4.

According to reports, the Organization of Petroleum Exporting Countries is likely to discuss output targets with Iraq. OPEC is reportedly foreseeing gradual increases from Iraq, Iraq and Libya.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 79.50 on Wednesday, down from its previous close of 79.77 late Tuesday in North American trade. The dollar scaled a high of 79.88 intraday and a low of 79.48.

The euro traded higher against the dollar at $1.3851 on Wednesday, as compared to its previous close of $1.3798 late Tuesday in North America. The euro scaled a high of $1.3851 intraday and a low of $1.3780.

In economic news, wholesale inventories in the U.S. rose less than expected in February, a Commerce Department release showed Wednesday. Wholesale inventories increased 0.5 percent in February after climbing by an upwardly revised 0.8 percent in January. Economists expected inventories to rise by 0.6 percent, matching the increase originally reported for the previous month.

Meanwhile, inventories of non-durable goods edged up just 0.1 percent in February following a 0.8 percent increase in January. A jump in inventories of farm product raw materials was partly offset by a steep drop in inventories of petroleum and petroleum products.

Economic news from Europe showed Germany's exports declined more-than-expected in February, while imports increased for the second consecutive month, official data revealed Wednesday. Exports fell 1.3 percent from January, marking the second drop in three months and the largest since May 2013, Destatis said. Exports were forecast to fall 0.5 percent after expanding 2.2 percent in January.

On the other hand, German imports rose 0.4 percent, faster than the 0.1 percent growth estimated by economists. However, the rate slowed from the 4.1 percent increase seen in January.

Elsewhere, U.K.'s visible trade deficit narrowed in February, largely reflecting a decline in imports of aircraft, data from the Office for National Statistics showed Wednesday. The deficit on trade in goods fell more-than-expected to GBP 9.1 billion in February from GBP 9.5 billion in January. The shortfall was expected to decline to GBP 9.2 billion. The deficit with EU nations widened to GBP 6.2 billion, while that with non-EU countries narrowed to GBP 2.9 billion.

Driven by a sharp decline in aircraft imports, U.K.'s overall imports dropped 2.2 percent month-on-month to GBP 32.6 billion. Imports of aircraft plunged 46.3 percent from January.