Oil makes turnaround after EIA data

Oil made a big turnaround on Wednesday. After having dropped to below $31, prices rebounded sharply after a report from the U.S. Energy Information Administration (EIA) reported that demand for gasoline rose more than expected and this overshadowed data that showed crude inventories rose.

Brent crude surged on the news to gain 3.4 per cent on Wednesday before easing 0.4 per cent today to trade around $34.27 a barrel. WTI oil bounced 0.8 per cent yesterday and traded 0.4 per cent lower today at $32.02.

In currency markets, the yen had weakened through the morning session to be 0.2 per cent softer at 112.35 yen. The weaker yen helped Japan equity markets gain ground, especially shares related to exporters.

Sterling still hovered at seven-year lows below the key $1.40 level but it has stabilized and was up 0.1 per cent at $1.3934 today. The British pound will likely remain under pressure due to the rising odds that Britain could vote at a June 23 referendum to exit the European Union.

The euro was up 0.1 per cent at $1.1023 after three days of decline against the dollar.

The Australian dollar was one of the worst-performing currencies during the Asian trading session today after the release of Australian data on capital expenditure which gave a weak outlook. AUDUSD traded down to as low as $0.7155.

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