NYMEX crude gains in Asia after China weekend reserve ratio cut

 Crude oil prices gained on Monday as China moved to accelerate economic growth by sharply cutting the ratio of cash banks need to set asaide as reserves at the weekend.

On the New York Mercantile Exchange, crude oil for delivery in May gained 0.86% to $57.82 a barrel.

On Sunday, China's central bank announced over the weekend that it lowered the amount of deposits it requires banks to hold as reserves to 18.5% from 19.5% effective April 20 in a surprise decision Free Stock Share Tips

The move came after official data showed that China’s economy grew 7.0% in the first quarter, the slowest pace of growth since the global financial crisis in 2008.

Data on industrial production, retail sales and fixed asset investment also fell short of forecasts, indicating that China needs to act to prevent a further slowdown in the economy.

The Asian nation is a top oil importer.

Also on Monday, New Zealand reported that first quarter consumer prices fell 0.3% quarter-on-quarter, more than the 0.2% drop seen Financial Astrology Trading Tips

Last week, crude oil futures retreated from lofty highs hit in the previous session on Friday, as investors cashed out of the market to lock in gains from a recent rally.

Despite Friday's decline, New York-traded oil prices increased $3.93, or 7.94%, on the week, the fourth consecutive weekly gain.

U.S. oil futures have been well-supported in recent sessions due to mounting expectations that U.S. shale oil production has peaked and may start falling in the coming months amid an ongoing collapse in rigs drilling for oil Commodity Trading Tips

Industry research group Baker Hughes (NYSE:NYSE:BHI) said late Friday that the number of rigs drilling for oil in the U.S. fell by 26 last week to 734, the lowest since 2010. It was the 19th straight week of declines.

Market players have been paying close attention to the shrinking rig count in recent months for signs it will eventually reduce the glut of crude flowing into the market.

Elsewhere, on the ICE Futures Exchange in London, Brent for June delivery slumped 53 cents, or 0.83%, on Friday to settle at $63.45 a barrel by close of trade. On Thursday, Brent rallied to $64.95, the highest level since Dec. 11.

Saudi Arabia increased oil output by about 668,000 barrels a day in March from a month earlier to hit a total of 10.294 million barrels, the most in three decades, underlining concerns over a glut in global supplies.

In the week ahead, investors will be looking ahead to reports on the U.S. housing sector and data on durable goods orders for further indications on the strength of the recovery.
On Tuesday, the American Petroleum Institute, an industry group, is to publish its weekly report on oil supplies. On Wednesday, the U.S. is to release data on existing home sales as well as a government report on oil inventories.