RTTN:Crude Slips Ahead Of Official Inventories Data
The price of crude oil was moving lower Thursday morning, despite a weak US dollar, as traders await cues from the official inventories data, due out later today and the outcome of Organization of Petroleum Exporting Countries' meet on production targets due Friday.
Light Sweet Crude Oil (WTI) futures for July delivery, shed $0.31 to $92.82 a barrel. Yesterday, oil settled lower amid demand growth concerns after the Organization for Economic Co-operation and Development trimmed its growth projections for the world economy and the International Monetary Fund trimmed China's economic growth for 2013 and 2014.
Wednesday after the market hours, the API said US crude oil inventories jumped to a three-decade high adding 4.40 million barrels and gasoline stocks added 1.94 million barrels in the weekended May 24.
This morning the U.S. dollar slipped back near a three-week low versus the euro and the Swiss franc, and toward a weekly low against sterling. The buck was steady near its 4-year high versus the yen.
In economic news, euro zone economic confidence strengthened in May, driven by brightening sentiment in all business sectors except for construction, survey results published by the European Commission showed. The economic confidence index climbed to 89.4 in May, in line with expectations, from 88.6 in April.
House prices in the UK rose more than expected in May, a survey by the Nationwide Building Society revealed. The house price index rose 1.1 percent year-on-year in May, compared with forecast of 0.9 percent rise. In April, prices recorded a 0.9 percent annual growth.
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 remain steady at 340,000.
Simultaneously, the Commerce Department will release its revised first quarter GDP estimate. Economists expect the first quarter GDP growth to be left unrevised at 2.5 percent.
Later during the session, the National Association of Realtors will release its pending home sales index for April. The consensus expectations call for a 1.4 percent increase in the index following a 1.5 percent increase in March.
Today during trading hours, the EIA will release its US crude oil inventories data for the weekended May 24. Analysts expect crude oil inventories to dip 500,000 barrels and gasoline stocks to shed a similar 500,000 barrels last week.
