(RTTNews) - The price of crude oil moved down to a fresh seven-month low Wednesday morning amid continued worries over the euro zone debt situation. Also, prices were under pressure after Iran agreed to allow the U.N. nuclear agency to restart an investigation into the country's nuclear program.
Light Sweet Crude Oil (WTI) futures for July delivery were down $0.85 to $91.00 a barrel. Yesterday, oil ended lower mostly on a strong dollar and demand growth concerns globally with the Greece and Spain in continued focus. Oil prices were impacted by growth concerns in the euro zone with the Organization for Economic Cooperation and Development downgrading the outlook for the euro area economy.
Tuesday after the market hours, the API said US crude oil inventories moved up 1.50 million barrels, while gasoline stocks fell by 4.50 million barrels in the weekended May 18.
Meanwhile, the U.S. dollar was moving up toward a two-year high versus the euro and trading around its two-month high against sterling. The buck was moving lower against the yen and ticking higher versus the Swiss franc.
In economic news from the euro zone, retail sales in the U.K. declined at the fastest pace in two years as April's wettest weather on record damped consumer spending, the latest official figures revealed. The Office for National Statistics said that retail sales volume, including automotive fuel, dropped 2.3 percent from a month ago, much faster than the 0.8 percent decrease forecast by economists. This was the biggest drop since January 2010 and followed a revised 2 percent growth in March.
Traders will look to the Commerce Department's release of its new home sales report for April, due out at 10 am ET. The consensus estimate calls for new homes sales of 335,000 compared to the 328,000 reported for March.
Later during the session, the Federal House Finance Agency is set to release its house price index for March. Economists expect a 0.3 percent month-over-month increase in the house price index, the same pace as in the previous month.
Today during trading hours the EIA will release its US crude oil inventories report for the weekended May 18. Analysts expect crude oil inventories to rise by 500,000 barrels, while gasoline stocks are seen dipping 700,000 barrels.
