RTTN:Crude Dips Ahead Of Official Inventories Data
The price of crude oil was extending losses Friday morning as traders await cues from the official inventories data from the EIA, due out later today.
Light Sweet Crude Oil (WTI) futures for February delivery, shed $1.26 to $91.66 a barrel. Yesterday, oil ended lower after the Federal Open Market Committee felt that the fiscal cliff drama would have an adverse impact on the economy late in 2012.
Thursday after the market hour, the API said US crude oil inventories a massive fell 12.032 million barrels last week, while gasoline stocks added 3.32 million barrels in the weekended December 28.
This morning, the U.S. dollar was steady around a three-week high versus the euro and sterling. The buck continued to extend its 2-year high versus the yen and trading higher against the Swiss franc.
In economic news from the euro zone, retail sales in Germany increased more than expected in November, data from the Federal Statistical Office showed. Sales increased 1.2 percent month-on-month on a seasonally and calendar adjusted basis in November. This was better than the expected 0.8 percent growth.
Meanwhile, euro zone's EU harmonized inflation remained unchanged in December, defying economists' forecast for a modest slowdown, preliminary data from statistical office Eurostat showed. The harmonized index of consumer prices (HICP), measured under the EU methodology, increased 2.2 percent annually in December, unchanged from the growth seen in November. In October, the inflation rate was 2.5 percent. Economists had expected inflation to ease to 2.1 percent in December.
Final data from Markit Economics showed that the euro zone downturn eased further at the end of the 2012, as rates of contraction in economic output and new business slowed. The composite output index rose to 47.2 from 46.5 in November. But it stayed marginally below the flash reading of 47.3 and the 50.0 no-change mark for the eleventh successive month.
Traders will look to the jobs data from the U.S. Labor Department, due out at 8.30 a.m ET. Economists expect non-farm payroll growth of 155,000 compared to 146,000 in November, with the private payrolls expected to expand by 157,000. The unemployment rate is expected to edge up 0.1 points to 7.8 percent.
The Institute for Supply Management is also due to release the results of its service sector survey at 10 am ET. The consensus expectations call for a reading of 54.5 in December compared to 54.7 in November.
Simultaneously, the Commerce Department is scheduled to release its factory orders report for November. Economists expect 0.3 percent increase in factory orders compared to 0.8 percent growth in October.
Today during trading hours, the EIA will release its US crude oil inventories report for the weekended December 28. Analysts expect crude oil inventories to dip one million barrels and gasoline stocks to add 2.3 million barrels last week.
