WSJ:Crude Oil Futures Slightly Higher; FOMC, Inventories in Focus
By Jacob Gronholt-Pedersen
Crude-oil futures traded slightly higher in Asia Wednesday with the U.S. benchmark approaching a nine-month high, but traders remain cautious ahead of a decision by the U.S. Federal Reserve on whether it will cut back its stimulus program.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in July traded at $98.64 a barrel at 0637 GMT, up $0.20 in the Globex electronic session. August Brent crude on London's ICE Futures exchange rose $0.13 to $106.15 a barrel.
The Nymex and Brent benchmarks have risen 8% and 6.5%, respectively, so far this month on a weaker dollar and geopolitical tension rising from the conflict in Syria, despite ample supply globally.
This week, however, all eyes are on the U.S. Federal Reserve for clues on whether it will continue its bond-buying program. A tapering of the stimulus program, which has helped support oil prices, could slow economic growth and dent demand for oil.
Federal Reserve Chairman Ben Bernanke is due to address reporters at the conclusion of the policy meeting at 1700 GMT on Wednesday.
Investors also await U.S. government data on crude inventories. A Dow Jones Newswires survey of 11 analysts shows inventories fell by 400,000 barrels in the week ended June 14.
The American Petroleum Institute, an industry group, said in its own survey late Tuesday that U.S. stockpiles fell by 4.3 million barrels for the week. The data from the Energy Information Administration is due at 1430 GMT on Wednesday.
Statoil said late Tuesday production at the Oseberg fields has partially resumed following the activation of an alarm. The field contributes to the BFOE basket of crudes and was--prior to the alarm--set to export 135,000 barrels a day in July.
Nymex reformulated gasoline blendstock for July--the benchmark gasoline contract--rose 53 points to $2.8847 a gallon, while July heating oil traded at $2.9647, 30 points higher.
ICE gasoil for July changed hands at $894.75 a metric ton, up $2.00 from Tuesday's settlement.
Write to Jacob Gronholt-Pedersen at jacob.pedersen@dowjones.com
