RTTN: Crude Slips Back Near $77 As Inventories Rise
(RTTNews) - The price of crude oil moved back near $77 Thursday morning after the EIA reported pile-up in crude inventories. Traders were also cautious ahead of a slew of economic data from the U.S.
Light Sweet Crude Oil (WTI) futures for July delivery were down $0.47 to $77.20 a barrel, after advancing to above $78 intraday previous session.
Yesterday, the EIA said U.S. crude stockpiles rose by 1.69 million barrels in the last week, sharply contrasting analysts' estimates for a draw-down of 1.3 million barrels. The EIA had been reported a draw-down in crude inventories in the previous two weeks.
Also, disappointing housing starts data from the U.S. dented sentiment. The Commerce Department said housing starts plummeted 10% to a seasonally adjusted annual rate of 593,000 in May.
Meanwhile, the U.S. dollar eased back near its 3-week low versus the euro and was trading weak against the British pound. The greenback was almost flat versus the yen.
Today, traders will look to the report on consumer price index for May from the Labor Department. Economists expect 0.1% drop in the headline consumer price index and 0.1% increase in the core consumer price index that excludes food and energy.
Also, the Labor Department will release jobless claims report for the week ended June 12. Economists expect decline in the jobless claims to 452,000 from 456,000 reported for the previous week. The Conference Board will release release a report on the U.S. leading index for May. Economists project the leading index to record a 0.5% rise.
