(Corrects RIC for U.S. crude and Monday's settlement price to
$41.52 in 2nd paragraph)
* Crude inventories down for first time since January
* Gains limited as markets pause for breath
By Aaron Sheldrick
TOKYO, March 22 (Reuters) - Oil prices rose in Asian trade
on Tuesday, adding to gains from the previous session after data
showed U.S. crude inventories fell for the first time since
January and as commodity prices broadly strengthened.
U.S. crude futures for May CLK6 , the front month from
Tuesday, were up 18 cents at $41.70 a barrel at 0630 GMT, after
settling up 0.9 percent at $41.52 on Monday.
The previous front month contract settled at $39.91 before
expiring on Monday.
Brent crude futures for May delivery LCOc1 were 17 cents
higher at $41.71 a barrel after rising 0.8 percent on Monday.
Brent has risen more than 50 percent from 12-year lows in
January.
"Oil and a number of other markets have reached a bit of a
pause phase," said Ric Spooner, chief market analyst at CMC
Markets in Sydney.
"For oil we have had a substantial rally. A lot of that has
been preemptive in nature, preempting production cuts, and
assisted by the weaker U.S. dollar," he said.
"We have arrived at the situation where the market is
waiting for news to catch up with it a little," Spooner said.
Stockpiles at the Cushing, Oklahoma delivery hub for U.S.
crude fell 570,574 barrels to 69.05 million in the week to March
18, traders said on Monday, citing data from market intelligence
firm Genscape.
Cushing inventories had previously risen toward 70 million
barrels, causing market participants to fear they could hit
capacity.
Iran may join other oil producers planning to freeze
production to support prices at a later date, OPEC's secretary
general said on Monday, as the country is seeking to raise its
exports after Western sanctions were lifted in January.
Producers from the Organization of the Petroleum Exporting
Countries and non-members are due to meet on April 17 in Qatar
discuss the output freeze.
Iran is keen to increase its oil exports, which fell by more
than half during the sanctions over Tehran's disputed nuclear
programme, and has said it should not be bound by a production
freeze until it can recover its market share.
"A further improvement in fundamentals will be needed for
bulks, crude oil and base metals to rally further," ANZ said in
a research note.
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Brent oil to retest resistance at $42.57 http://graphics.thomsonreuters.com/US/2/PVB_20162203091800.png
U.S. oil targets $43 http://graphics.thomsonreuters.com/US/2/PVB_20162203090958.png
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