MW: Crude ticks higher before U.S. inventories update
By Claudia Assis and Nick Godt, MarketWatch
SAN FRANCISCO (MarketWatch) -- Crude-oil futures inched higher Wednesday as disappointing jobs data weighed against a report showing that manufacturing in the Chicago area remained at high levels.
Traders were also guardedly optimistic about the Department of Energy's weekly report on crude and crude-products inventories at 10:30 a.m. Eastern, which is expected to show a drop in stockpiles last week.
Crude for August delivery rose 47 cents, or 0.7%, to $76.41 a barrel on the New York Mercantile Exchange.
Crude-oil futures had opened lower Wednesday, but ticked higher as a report showed that manufacturing in the Chicago area slipped a tad in June but held steady at expanding levels.
The Chicago purchasing managing index declined to 59.1 in June from 59.7 in May. Readings above 50% indicate overall business expansion.
Earlier Wednesday, payroll processor ADP said private-sector employment increased by 13,000 in June. Economists surveyed by MarketWatch had been expecting an increase of 65,000. Read more about the ADP report.
Weekly inventories data from the Energy Information Administration are due at 10:30 a.m. Late Tuesday, the American Petroleum Institute estimated a decline of 3.4 million barrels in the nation's oil stockpiles for the week ended June 25, API's first reported decline in three weeks.
Reformulated gasoline for July delivery added a penny, or 0.3%, to $2.08 a gallon. Natural gas for August delivery advanced 4 cents, or 0.9%, to $4.59 per million British thermal units.
Meanwhile, Hurricane Alex, which strengthened overnight from a tropical storm, is heading for the coastline near the Texas-Mexico border, but its path is likely to miss most oil and gas installations in the area. Landfall is expected late Wednesday or early Thursday. Read more about Hurricane Alex.
Several energy companies have reported evacuations ahead of Alex. BP PLC (BP 28.81, +1.14, +4.12%) has warned the storm could hinder efforts to increase the volume of oil from its blown Macondo field some 40 miles off the coast of Louisiana.
On Tuesday, crude sank 3% as a drop in U.S. consumer confidence and a downward revision in a leading Chinese economic indicator sparked a broad market selloff.
