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Daily Review 19.10.2016

Oil extends gains as API reports draw in U.S. crude

Oil settled up on Tuesday and extended gains in post-settlement trade as American Petroleum Institute’s (API) data showed an unexpected draw in U.S. crude inventories last week.

Crude stockpiles dropped 3.8 million barrels in the week to Oct. 14, the API reported. Analysts had expected an increase of 2.7 million barrels.

Brent crude LCOc1 settled up 16 cents, or 0.3 percent, at $51.68 a barrel. It raised to as high as $52.15 after the API data.

U.S. West Texas Intermediate (WTI) crude CLc1 ended the session up 35 cents, or 0.7 percent, at $50.29. In post-settlement trade, it got to $50.78.

Crude prices gained some 13 percent since the Organization of the Petroleum Exporting Countries proposed on Sept. 27 its first output cut or freeze in eight years to restrain in a global crude glut. The group gathers on Nov. 30 for its policy meeting.

Asian markets maintain gains after China growth, dollar weakens

Asian stocks held gains after Chinese data confirmed the economy had stabilized. The dollar weakened versus most peers and oil rallied.

The MSCI Asia Pacific Index advanced to a one-week high as China reported a 6.7 percent increase in its gross domestic product for the third quarter.

Japan’s Nikkei 225 was down 0.01 percent at 16,962.37; across the Korean Strait, the Kospi was down 0.1 percent at 2,038.38.

Australia’s ASX 200 opened higher, trading up 0.33 percent, with most sectors climbing. Energy sector was up 0.39 percent, while the heavily-weighted financial sector added 0.30 percent.

Chinese Gross Domestic Product (GDP) expanded 6.7 percent in the year to September. Other data showed retail sales rising a solid 10.7 percent and urban investment 8.2 percent, but industrial output disappointed by growing only 6.1 percent.

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