By Claudia Assis, MarketWatch
SAN FRANCISCO (MarketWatch) — Crude-oil futures wavered between small gains and losses Wednesday, hit by fears of an inventories increase but supported by higher U.S. equities.
Crude for October delivery CL1V +0.19% added 21 cents, or 0.2%, to $89.12 a barrel on the New York Mercantile Exchange. Oil futures have settled higher for four sessions.
The October contract traded lower during Asian and European trading hours, but gradually pared declines as U.S. equities neared their start. : Higher U.S. stock prices are often viewed as a proxy of improved economic conditions and thus future oil demand.
Weighing negatively, however, was the American Petroleum Institute’s supplies report late Tuesday showing a surprise increase in weekly inventories.
The Energy Information Administration is scheduled to present its official data at 10:30 Eastern. Analysts polled by Platts expect the data to show crude-oil supplies falling by around 1.2 million barrels as low imports more than offset the release of oil from the U.S.’ strategic petroleum reserve.
The API reported an increase of 5.13 million barrels for the week ended Aug. 26.
Earlier Wednesday, a gauge of economic activity in Chicago showed a slowdown in August but came in better than analysts had expected. The Chicago PMI slowed in August to a 56.5% reading from 58.8% in July.
Economists polled by MarketWatch had anticipated a 53% reading. Any reading over 50% indicates expansion.
The Chicago PMI is closely followed because it’s the last major regional indicator before the national Institute for Supply Management’s manufacturing gauge, due for release Thursday.
The Dow Jones Industrial Average DJIA +1.01% was up 116 points, or 1%, at 11,676, extending gains into a fourth day and reclaiming a slight advance for the year.
