(Updates prices)
By Aaron Sheldrick
TOKYO, June 22 (Reuters) - Oil prices rose in Asian trading
on Wednesday, with U.S. crude joining Brent above $50 a barrel
after data from the American Petroleum Institute (API) showed a
larger than expected draw on stocks.
U.S. crude futures' August contract CLc1 , the new front
month from Wednesday, climbed 35 cents to $50.20 a barrel by
0604 GMT, marking its first rise above $50 since June 10.
Brent crude futures LCOc1 were up 32 cents at $50.94 a
barrel.
U.S. crude inventories fell by 5.2 million barrels for the
week ended June 17, the API said. The trade group's figures were
triple the draw of 1.7 million barrels forecast by analysts in a
Reuters poll. API/S
The U.S. government's Energy Information Administration will
issue official stockpile data on Wednesday. EIA/S
Markets remain jumpy over the possibility the United Kingdom
will vote to leave the European Union on Thursday in a
referendum, with polls showing little difference between the
"remain" and "leave" camps.
The dollar erased early modest gains on Wednesday with
sterling near a six-month high on the eve of the referendum.
FRX/
Japan's Nikkei .N225 closed nearly 0.6 percent lower,
while gold prices XAU= were down 0.4 percent.
"Strengthening in the dollar and weakness in other
currencies would ... be directionally short-term bearish for
crude oil" in the event of a British exit, Societe Generale (PA:SOGN) said
in a research note.
A stronger dollar makes oil more expensive because it raises
the cost for imports for most of the world's countries.
Still, fundamentals could come into play once the dust
settles from the vote.
"Global demand growth is quite robust, driven by the U.S.,
China, India and other emerging markets," Societe Generale said.
"On the supply side, declining U.S. crude production is expected
to underpin a trend of lower non-OPEC production." (See chart)
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CHART: Brent oil to rise to $51.46 http://tmsnrt.rs/28NKaFI
CHART: U.S. oil may test resistance at $51.85 http://tmsnrt.rs/28MhD3D
CHART-U.S. oil production is falling http://tmsnrt.rs/28NJgZS
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