STOCK MARKET WATCH -- Wednesday, 21 March 2012

[xchrom]

43. Oil Rebounds From Biggest Drop in Three Months on Supply

http://www.bloomberg.com/news/2012-03-21/oil-rebounds-from-biggest-drop-in-three-months-on-supply.html

Oil rebounded from the largest decline in three months in New York after an industry report showed crude stockpiles fell in the U.S, the world’s biggest consumer of the commodity.

Futures gained as much as 0.7 percent, recovering from a 2.3 percent drop yesterday after Saudi Arabia’s Oil Minister Ali al-Naimi said his country can increase output by 25 percent immediately if necessary. U.S. crude inventories shrank 1.4 million barrels last week, the most in six weeks, according to the American Petroleum Institute. A Bloomberg News survey indicated that today’s Energy Department may show stockpiles climbed 2.2 million barrels.

“The API data showed a surprising draw on the crude inventories,” said Michael Poulsen, an analyst at Middelfart, Denmark-based Global Risk Management. “If these numbers are confirmed by the Energy Department, it would be a bullish factor for crude prices.”

Crude for May delivery rose as much as 79 cents to $106.86 a barrel in electronic trading on the New York Mercantile Exchange. It was at $106.43 at 12:20 p.m. London time. The contract dropped $2.49 yesterday to $106.07, the lowest close since March 15. The April future, which expired, fell $2.48 to $105.61. Front-month prices are up 7.7 percent this year.