WSJ: OIL FUTURES WTI Under Pressure Ahead Of Weekly Statistics
By Paddy Gourlay Of Dow Jones Newswires
LONDON (Dow Jones)- U.S. crude futures were under slight pressure Wednesday morning ahead of the release of weekly stock inventory data from the Department of Energy at 1430 GMT.
The front-month U.S. contract was down around 25 cents more than its European equivalent after a choppy early morning session in oil futures.
But the two futures markets are largely consolidating Thursday's gains despite a weaker euro against the dollar. European stocks, which are slightly positive, are lending support.
At 1101 GMT, the front-month August Brent contract on London's ICE futures exchange was 4 cents down at $77.07 a barrel.
The front-month July contract on the New York Mercantile Exchange, called West Texas Intermediate, was trading 32 cents lower at $76.62 a barrel.
Crude oil inventories are expected to fall by 1.3 million barrels in the Department of Energy figures, according to the mean of 13 analysts' forecasts.
But opinion was mixed. Eleven analysts predicted a draw, one a build and one sees no change. Forecasts ranged from a decline of 2.5 million barrels to an increase of 1 million barrels.
Gasoline inventories are expected to be unchanged, while stocks of distillate, which includes heating oil and diesel, are expected to rise by 800,000 barrels.
The American Petroleum Institute statistics late Tuesday showed builds in crude, gasoline and distillate for the week ending June 11.
However, the trade body also reported a rise in gasoline demand, up 1.4% on the week.
July WTI gained $2.17 a barrel from open to close Tuesday, but settled just lower than its 200-day moving average of $76.98/bbl, a broker at London-based CMC Markets said.
Although the front-month WTI contract opened at $77.06 a barrel Wednesday and firmed to an intraday high of $77.19 a barrel earlier, the market has failed to sustain prices above the 200-day moving average for long.
"This fall looks like a technical move," the broker said.
The ICE's gasoil contract for July delivery was $5 higher at $660 a metric ton, while Nymex gasoline for July delivery was 1.77 cents lower points at 210.38 cents a gallon.
-By Paddy Gourlay, Dow Jones Newswires, +44 (0)20-7842-9364; patrick.gourlay@dowjones.com
