Singapore: Oil prices extended gains in Asian trade. New York's main contract, West Texas Intermediate (WTI) for June delivery, was up by 38 cents to $102.08 in afternoon trade while Brent North Sea crude for June gained 21 cents to $109.45 per barrel.
Ernest Moniz, Secretary of Energy also stated that the US is reviewing its ban on crude exports, but did not specify what options are being weighed. WTI rose by $1.11 in New York trade after his comments, while Brent gained 83 cents in London. But less-than-satisfactory transportation links could still hinder the outflow of supplies from storage hubs after the ban is lifted, he said. "Within the US they still have concerns regarding the expansion of the Keystone XL pipeline," added Desmond Chua, market analyst at CMC Markets
"Transportation is the main hindrance due to the development of pipelines in different regions and jurisdiction," added more. The Keystone project has pitted environmental groups against the oil industry, which has argued that it will bring much-needed jobs to the United States and help fulfill the US goal of energy self-sufficiency. Dealers, meanwhile, are awaiting key US stockpiles data for clues about demand ahead of the busy summer driving season. The Department of Energy's weekly report on crude supplies to be released later Wednesday is expected to show stockpile levels unchanged at 397.6 million barrels for the week to May 9, according to analysts polled by the Wall Street Journal.
