IV:U.S. oil futures remain below $100 a barrel ahead of supply data
Investing.com - U.S. oil futures inched lower on Wednesday, as market players awaited the release of weekly supply data out of the U.S. later in the session to gauge the strength of oil demand from the world’s largest consumer.
On the New York Mercantile Exchange, West Texas Intermediate crude oil for delivery in May held in a range between $99.39 a barrel and $99.82 a barrel.
Nymex oil last traded at $99.68 a barrel during European morning hours, down 0.07%, or 7 cents. The May contract lost 1.81%, or $1.84, on Tuesday to settle at $99.74 a barrel.
Futures were likely to find support at $99.14 a barrel, the low from March 26 and resistance at $101.57 a barrel, the high from April 1.
Wednesday’s government report was expected to show that crude oil stockpiles rose by 1.1 million barrels last week. The data was also expected to show that distillate stockpiles, including heating oil and diesel, decreased by 100,000 barrels.
After markets closed Tuesday, the American Petroleum Institute, an industry group, said that U.S. crude inventories rose by 5.8 million barrels in the week ended March 28, compared to expectations for an increase of 5.3 million barrels.
The report also showed that distillate stocks increased by 17,000 barrels, while gasoline stockpiles declined by 18,000 barrels.
Investors also looked ahead to key U.S. economic data later in the day for further indications on the strength of the economy and the future course of monetary policy.
The U.S. is to release the ADP report on private sector job creation for March later in the session. The report comes ahead of Friday's monthly government jobs report that is expected to show a gain of 197,000 new jobs in March.
A recent batch of upbeat U.S. economic data added to hopes that the slowdown in economic activity seen at the start of the year would be temporary.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for May delivery eased up 0.08%, or 8 cents, to trade at $105.70 a barrel, while the spread between the Brent and U.S. crude contracts stood at $6.02 a barrel.
