RTTN:Crude Ticks Up Ahead Of Official Inventories Data
(RTTNews) - The price of crude oil was ticking higher Wednesday morning as traders await cues from the official inventories data from the EIA. Yesterday after the market hours data out of an industry group revealed that U.S. crude oil inventories plunged by a whopping 12 million barrels.
Meanwhile, China's official factory purchasing managers' index fell to an eight-month low of 50.1 in July, indicating sluggish growth in the sector, while a survey results from HSBC indicated the more market-sensitive private sector is starting to recover. The HSBC PMI rose to a seasonally adjusted 49.3, its highest level since February and little changed from a flash estimate of 49.5.
Light Sweet Crude Oil (WTI) futures for September delivery, edged up $0.22 to $88.28 a barrel. Yesterday oil settled lower as investor await cues from the much anticipated European Central Bank and Federal Reserve policy meeting this week. Nevertheless, oil prices pared some of the losses after news reports that the U.S. has slapped Iran with additional sanctions over its nuclear development program.
Tuesday after the market hours, the API said U.S. crude oil inventories plunged 11.60 million barrels and gasoline stocks shed 1.3 million barrels in the weekended July 27.
This morning, the U.S. dollar was lingering around its 3-week low versus the euro and ticking higher against sterling. The buck was moving higher versus the yen, while edging lower against the Swiss franc.
In economic news, the euro zone manufacturing sector continued to contract data from Markit Economics showed. The manufacturing Purchasing Managers' Index fell more than initially estimated to 44 in July, a 37-month low, from 45.1 in June. The flash estimate for July was 44.1.
Germany's manufacturing sector contracted more than initially estimated in July, and the rate of fall accelerated from the previous month, data from a survey by Markit Economics and BME showed. The seasonally adjusted purchasing managers' index for the manufacturing sector dropped to 43 in July from 45 in June, and hit the lowest level since June 2009.
Today during trading hours, the EIA will release its U.S. crude oil inventories report for the weekended July 27.
Traders will look to the report on private sector employment from the ADP, due out at 8.30 a.m ET. Analysts expect for an addition of 120,000 jobs by the sector in July following an addition of 176,000 jobs in June.
Later during the session, the results of the manufacturing survey of the Institute for Supply Management are due out at. Economists expect the index to show a reading of 50.1 for July compared to 49.7 in June.
(RTTNews) - The FOMC is scheduled to release its policy statement at 2:15 p.m. ET.
