(RTTNews) - The price of crude oil slipped back near a seven-month low Wednesday morning amid concerns over demand growth. Also, traders await cues from the official crude oil inventories report from the EIA, due out later during the session.
Light Sweet Crude Oil (WTI) futures for June delivery were down $1.64 to $92.34 a barrel. Yesterday, oil ended at a five-month low on demand growth concerns after developments in Greece indicate elections now imminent in the troubled nation. With the likelihood of a fragmented parliament yet again in the new elections in June, the country may be heading out of the euro zone.
Tuesday after the market hours, the API said US crude oil inventories rose 6.57 million barrels, while gasoline stocks fell 2.6 million barrels in the weekended May 11.
This morning, the U.S. dollar was steady near its 4-month high versus the euro and near its one -month high against sterling. The buck was leveling off from its monthly low versus the yen, while trading flat against the Swiss franc.
In economic news, euro zone annual inflation for April was confirmed at 2.6 percent, down from 2.7 percent in March, final data from Eurostat showed. Nonetheless, inflation continues to stay above the European Central Bank's 'below, but close to 2 percent' target. Monthly inflation was 0.5 percent in April.
Meanwhile, the Bank of England said prospects for U.K. growth remain unusually uncertain. U.K. economic growth is set to remain subdued, while inflation is judged to be somewhat higher than expected three months ago, the BoE said in its quarterly Inflation Report published today.
Traders will look to the report on housing starts from the U.S. Commerce Department, due out at 8.30 a.m ET. Economists estimate housing starts for April to come in at 690,000 each, while building permits are expected to have declined to 725,000. In March, housing starts fell 5.8 percent to 654,000 compared to a 4.5 percent increase in building permits.
Today during trading hours, the EIA will come out with its US crude oil inventories report for the weekended May 11. Analysts expect US crude oil inventories to jump 1.7 million barrels, while gasoline stocks are seen shedding 500,000 barrels last week.
