By Claudia Assis, MarketWatch
SAN FRANCISCO (MarketWatch) — Crude-oil futures wavered between small gains and losses Wednesday as higher U.S. equities trumped a surprise increase in weekly crude inventories.
Crude for October delivery CL1V +0.21% added 45 cents, or 0.5%, to $89.37 a barrel on the New York Mercantile Exchange. Oil futures have settled higher for four sessions.
The October contract traded lower during Asian and European trading hours, but gradually pared declines as U.S. equities neared their start. Higher U.S. stock prices are often viewed as a proxy of improved economic conditions and thus future oil demand.
Futures traded lower immediately after the Department of Energy’s Energy Information Administration reported a crude supply increase of 5.3 million barrels.
Analysts polled by Platts had expected a decline of 1.2 million barrels.
The EIA also reported that gasoline inventories decreased by 2.8 million barrels, and distillates inventories increased by 400,000 barrels.
Gasoline stocks were expected to drop by 1.1 million barrels, while distillates stocks were seen rising by 1.1 million barrels by the analysts surveyed by Platts.
September gasoline RB1U +1.01% added 3 cents, or 1.1%, to $3.03 a gallon, while September heating oil HO1U +0.33% , a distillate, gained 7 cents, or 0.2%, to $3.08 a gallon.
Earlier Wednesday, a gauge of economic activity in Chicago showed a slowdown in August but came in better than analysts had expected. The Chicago PMI slowed in August to a 56.5% reading from 58.8% in July.
Economists polled by MarketWatch had anticipated a 53% reading. Any reading over 50% indicates expansion.
The Chicago PMI is closely followed because it’s the last major regional indicator before the national Institute for Supply Management’s manufacturing gauge, due for release Thursday.
The Dow Jones Industrial Average DJIA +0.57% was recently up 83 points, or 0.7%, at 11,642, extending gains into a fourth day and reclaiming a slight advance for the year.
