MW: Crude oil pares losses, trades above $74 a barrel
By Claudia Assis and Nick Godt, MarketWatch
SAN FRANCISCO (MarketWatch) -- Crude futures pared their losses Tuesday but remained on track for their first monthly decline since May with traders positioned for upcoming weekly supplies data while worries about global economic growth weighed on markets.
Oil for October delivery fell as low as $73.38 a barrel in electronic trading on the New York Mercantile Exchange, and was lately off 35 cents at $74.30 a barrel, recovering some lost ground as equities also pared their losses.
Traders expect another rise in inventories this Wednesday, when the government releases its weekly report on stockpiles. Investors get a preview of those numbers as trade group American Petroleum Institute releases its data Tuesday at 4:30 p.m. Eastern.
Analysts polled by Platts expect an increase of 1.9 million barrels for the week ended Aug. 27. Gasoline stocks are seen down 1 million barrels, while distillates stocks are forecast to increase 1 million barrel.
Ample inventories have been a sticky issue for crude, on track to lose more than 5% in August.
Crude pared losses after a gauge of consumer confidence gave investors some encouragement. The Conference Board said its consumer confidence index rose to 53.5 in August, from an upwardly revised 51 in July, but consumers remain "apprehensive."
Earlier, traders welcomed an index showing a strong rise for housing prices. The S&P Case-Shiller home-price indexes showed prices rising 4.4% in the second quarter.
Hurricane Earl still threatens the East Coast, missing key oil regions in the Gulf of Mexico, and Tropical Storm Fiona is on its heels, expected to trace a similar path.
Natural gas prices got little to cheer about even with the weather. Natural gas for October delivery retreated 4 cents, 1.1%, to $3.77 per million British thermal units.
Reformulated gasoline for October delivery was flat at $1.91 a gallon.
On Monday, crude fell 0.6% with the latest report on U.S. consumer spending and income failing to reassure investors nervous about the slowing economy.
There is a heavy calendar for economic reports this week, including July employment numbers, manufacturing, productivity and factory orders.
