An Iranian oil tanker docks with and oil facility owned by the Iranian National Oil Company in the Persian Gulf.[/caption]Crude-oil futures edged upward in Asian trade Tuesday, extending the previous day's gains as inflation in China eased and geopolitical tensions continued in the region.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in May traded at $93.59 a barrel at 0638 GMT, up $0.23 in the Globex electronic session. May Brent crude on London's ICE Futures exchange rose $0.40 to $105.06 a barrel.
China's consumer price index rose 2.1% on-year in March, slower than a 3.2% rise in February, data showed Tuesday. The lower-than-expected inflation allows China's central bank to take further measures to boost growth, which in turn leads to an increase in oil demand.
Oil prices are also tracking developments in Middle East and North Korea.
Iran has launched a new uranium production facility and started operations at two uranium extraction mines, according to an AFP report citing state media Tuesday.
The U.S. and Europe implemented sanctions to contain Tehran's nuclear enrichment program, which they say is meant to build nuclear weapons. Talks between Iran and western countries had failed over the weekend.
"We expect to see continued conflict from the Gaza strip adding to Brent prices in the near- to medium-term, but worries about a potential European crisis following the recent flare up in Cyprus as well as the impact of austerity on activity in many of the advanced economies will keep prices somewhat contained,"National Australia Banksaid in a note to clients.
Meanwhile, North Korean staff at the Kaesong Industrial Complex didn't arrive for work on Tuesday morning, after the country said it intends to close the industrial park jointly run with South Korea.
A permanent shutdown of the industrial complex would signal a major deterioration in relations between the two countries. North Korea is also expected to conduct a missile test as early as this week.
NAB said it expects Nymex crude prices to rise to around $103 a barrel this year, and Brent crude prices to touch $117 a barrel.
U.S. weekly oil data are expected to show crude oil stockpiles rose 1.2 million barrels last week, according to a preliminary survey by Dow Jones Newswires. The American Petroleum Institute is due to report its inventory data later Tuesday.
Nymex reformulated gasoline blendstock for May--the benchmark gasoline contract--rose 88 points to $2.9181 a gallon, while May heating oil traded at $2.9592, 55 points higher.
ICE gasoil for April changed hands at $887.00 a metric ton, up $6.25 from Monday's settlement.
By The Wall Street Journal
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