RTTN: Crude Slips Below $75 Ahead Of Official Inventories Data
(RTTNews) - The price of crude oilmoved back below $75 Wednesday morning after industry data overnight showed an unexpected rise in U.S. crude oil stockpiles.
Light Sweet Crude Oil (WTI) futures for September delivery were down $1.02 to $74.75 a barrel. Yesterday, oil ended higher snapping its 5-day losing streak amid hopes of recovery in demand.
Tuesday after the market hours, the API said U.S. crude oil inventories were up by 5.9 million barrels last week, sharply contrasting consensus expectations for a dip of 1.1 million barrels. Gasoline stocks rose 2 million barrels, belying forecasts for a 200,000 barrel decline.
Meanwhile, the U.S. dollar was trading weak against the euro and sterling, and lingering around its lowest level since 1995 versus the yen.
Traders will look to the official data on weekly crude oil inventories from the EIA due out today during market hours. Analysts expect crude oil inventories to decrease by of 1.3 million barrels and gasoline inventories are seen down by 500,000 barrels.
Oil may dip further if the official weekly data due out today from the EIA confirms pile up of inventories, analysts opined.
