The price of crude oil was moving lower Wednesday morning as traders were cautious ahead of the official inventories report from the EIA, due out later during the session.
Light Sweet Crude Oil (WTI) futures for May delivery, slipped 0.39 to $93.81 a barrel. Yesterday, oil settled higher for a second straight session, tracking rising global equity markets with the dollar weakening against a basket of major currencies. Investors also mulled over the lower than expected Chinese inflation data, inducing speculation that the Chinese central bank will reduce key interest rates.
Tuesday after the market hours, the API said U.S. crude oil inventories rose by 5.06 million barrels and gasoline stocks were up by 1.95 million barrels in the weekended April 05.
This morning, the U.S. dollar was extending its one-month low versus the euro and the Swiss franc, while trading flat against sterling. The buck was steady near its 4-year high versus the yen.
In economic news from the euro zone, French industrial production recovered at a faster than expected pace in February, the statistical office Insee said. Industrial output gained 0.7 percent in February from a month ago, when it fell 0.8 percent. It was forecast to grow just 0.2 percent. At the same time, manufacturing output grew 0.8 percent, offsetting the 1.3 percent drop seen in January. Construction output advanced 1 percent.
Today during trading hours, the EIA will release its U.S. crude oil inventories report for the weekended April 05. Analysts expect crude oil inventories to add 1.2 million barrels, while gasoline stocks are seen shedding 1 million barrels last week.
From the U.S., the Federal Reserve will release the minutes of the March 19-20 FOMC meeting at 2 pm ET.
