IV:WTI oil futures edge lower but still on course for 7% annual gain
Investing.com - U.S. oil futures edged lower on the final trading day of the year on Tuesday, but prices remained on course for a fourth annual increase in five years.
On the New York Mercantile Exchange, West Texas Intermediate crude for delivery in February traded at USD99.18 a barrel during European morning trade, down 0.1%. New York-traded oil futures held in a range between USD99.08 a barrel and USD99.39 a barrel.
Nymex oil futures were likely to find support at USD98.53 a barrel, the low from December 24 and resistance at USD100.42 a barrel, the high from December 30. The February contract settled 1.03% lower on Monday to end at USD99.29 a barrel.
Volumes were expected to remain light, with year-end positioning and profit-taking driving flows.
Market players looked ahead to U.S. data on consumer confidence and manufacturing activity in the Chicago region later in the day to gauge the economic strength of the world’s largest oil consuming nation.
Oil traders were also awaiting key U.S. weekly supply data, which may show a fifth consecutive weekly drop in crude stockpiles.
The American Petroleum Institute will release its inventories report later in the day. The more closely-watched numbers from the U.S. Energy Information Administration have been delayed until Friday due to the New Year’s holiday.
U.S. crude futures, also known as West Texas Intermediate or WTI, have been well-supported in recent weeks amid indications the U.S. economy is gaining momentum. Prices have gained approximately 7% in 2013.
Elsewhere, on the ICE Futures Exchange in London, Brent oil futures for February delivery inched up 0.1% to trade at USD111.35 a barrel, while the spread between the Brent and U.S. crude contracts stood at USD12.17 a barrel.
London-traded Brent prices are on track for a decline of 0.4% on the year.
