The price of crude oil was recovering from its previous session's steep fall Wednesday morning as trader await cues from the official inventories data from the EIA, due out later during the sessions.
Light Sweet Crude Oil (WTI) futures for January delivery, added $0.75 to $87.50 a barrel. Yesterday, oil lost nearly 3 percent as supply concerns eased with developments in the Middle East suggest mediators were on the verge of a breakthrough for an immediate end to hostilities between Israel and Hamas that controls the Gaza Strip. Oil prices also tracked a declining equity market as investors await the outcome of the euro zone finance ministers meeting that decides on the next tranche of bailout aid to Greece.
Tuesday after the market hours, the API said US crude oil inventories fell 1.90 million barrels and gasoline stocks dipped 4.80 million barrels in the weekended November 16.
This morning, the U.S. dollar was leveling off from its 2-week low versus the euro and a weekly low against sterling. The buck was extending its 7-month high versus the yen and ticking higher against the Swiss franc.
In economic news from the euro zone, Bank of England policymakers decided to retain quantitative easing at GBP 375 billion through a split vote early November, as David Miles sought an increase of GBP 25 billion citing the slackness in the economy. Eight members of the Monetary Policy Committee agreed that maintaining the size of the asset purchase programme was appropriate, minutes showed Wednesday. The meeting was held on November 07 and 08.
Traders will look to the weekly jobless claims report from the U.S. Labor Department due out at 8.30 a.m ET. Economists expect claims to decline to 415,000 from 439,000 in the previous week.
Today during trading hours, the EIA will release its US crude oil inventories report for the weekended November 16. Analysts expect crude oil inventories to jump 1 million barrels and gasoline stocks to add 1.25 million barrels last week.
