Crude Trades Higher on Speculation that Fuel Demand has Risen ahead of the Summer Driving Season

- In a quiet night on the energy front, crude oil futures are currently trading higher in the session and sit just above the $64 handle. Crude oil is trading higher on speculation that demand foe fuel is increasing ahead of the summer driving season.

- China announced overnight that their emergency oil reserve will cover a 30 day supply in first phase.

- According to a CNPC researcher China's oil demand may reach 500M tons/year by 2020.

- Citigroup raised their view on the Oil and Gas sector to an overweight from and underweight overnight, while cutting their rating on the electricity sector to neutral from overweight.

- In a letter sent to the Chancellor of the Exchequer the Bank of England's Mervyn King attributed the rise in y/y CPI to 3.1% to higher food, energy, and petroleum prices.

- On the weather front, Accuweather wrote on its website that the Northeast, especially New England, will continue to be impacted by the powerful storm that slammed the East Coast with record and flooding rain, heavy snow, power outages and travel delays the past two days. The storm will be slow to depart, prolonging the time that the Northeast will be chilled by unseasonably cool air. By the weekend, warmer air should finally return.