RTTN:Crude Slips Ahead Of Official Inventories Data
The price of crude oil was ticking lower Wednesday morning ahead of the US official inventories data, due out later during the session. Also, traders focus on the developments in the major Latin American crude producer, Venezuela, following the death of President Hugo Chavez.
Light Sweet Crude Oil (WTI) futures for April delivery, slipped $0.09 to $90.73 a barrel. Yesterday, oil snapped its three-session losing streak to settle marginally higher tracking rising global equity markets even as demand growth concerns waned. Oil prices were also supported by a weak dollar against a basket of major currencies and some upbeat macroeconomic data out of the U.S. and eurozone. Meanwhile, China kept its growth target for the year unchanged at 7.5 percent, with focus on maintaining a more moderate growth rather than a double-digit growth.
Tuesday after the market hours, the API said US crude oil inventories gained 5.6 million barrels in the weekended March 01.
This morning, the U.S. dollar was hovering around its 2-month high versus the euro and its 30-month high against sterling. The buck was trading around its two-and half year high versus the yen and ticking higher against the Swiss franc.
In economic news, the eurozone economy contracted 0.6 percent quarter-on-quarter in the fourth quarter, the latest figures from Eurostat confirmed. This was the steepest rate of contraction since the first quarter of 2009, data showed. The latest figure matched the preliminary estimate. In the third quarter, the economy contracted 0.1 percent.
Traders will look to the private sector employment report from the ADP, due out at 8.15 a.m ET. Economists expect an addition of 173,000 jobs in March compared to 192,000 in the previous month.
Today during trading hours, the EIA will release its US crude oil inventories report for the weekended March 01. Analysts expect crude oil inventories to gain 788,000 barrels, while gasoline stocks are seen shedding 1 million barrels last week
