MW: Oil edges up ahead of data on petroleum inventories
Crude-oil futures edged higher on Wednesday, as U.S. economic data showed a decline in consumer prices during March and as traders awaited a government update on petroleum inventories.
The Energy Information Administration will release its closely watched data on petroleum inventories at 10:30 a.m. Eastern.
Crude for May delivery was up 25 cents, or 0.5%, to $49.66 a barrel in electronic trading on Globex.
"In the short term, direction will be provided by the EIA inventory numbers," said Edward Meir, an analyst at MF Global.
"However, we still expect the U.S. stock market to be the intermediate price driver for most commodity complexes over the next few weeks, as key earnings announcements, along with the eagerly awaited bank 'stress tests,' should set the tone," Meir said in a research note.
U.S. stock futures pointed to a lower opening, with chip giant Intel Corp.'s cautious outlook giving further ammunition for bears. See Indications.
Regarding petroleum inventories, analysts surveyed by Platts expect U.S. crude stockpiles to have risen 2.5 million barrels in the week ended April 10. They also expect declines of 960,000 barrels for gasoline and 1.5 million barrels for distillates.
Late Tuesday, the American Petroleum Institute reported an increase of 6.5 million barrels in crude stockpiles for the week ended April 10. API, which uses a different methodology, also reported a decline of 613,000 barrels in gasoline stocks and an increase of 87,000 barrels in distillate supplies.
Also on Globex, May reformulated gasoline was flat at $1.46 a gallon and May heating oil was unchanged at $1.41 a gallon. May natural gas futures fell 2 cents to stand at $3.67 per million British thermal units.
Earlier Wednesday, the Labor Department reported that overall U.S. consumer prices fell a seasonally adjusted 0.1% in March, meeting analysts' expectations. Energy prices decreased 3% last month, with declines in fuel oil, gasoline and natural gas.
Separately, manufacturing firms in the New York area reported their business was weakening in April, but at a slower pace than in March. The Empire State index improved to negative 14.7 in April, up from negative 38.2 in March.
Readings below zero indicate more firms said business was getting worse. New orders and production improved markedly, while inventories continued to fall.
