By Claudia Assis, MarketWatch
SAN FRANCISCO (MarketWatch) — Crude-oil futures advanced Wednesday ahead of an inventories report, garnering support from positive U.S. data, after tallying two days of losses.
Crude for April delivery CLJ2 -0.79% rose 53 cents, or 0.5%, to $107.06 a barrel on the New York Mercantile Exchange. Prices had lost nearly 3% in the previous two sessions.
“There is a more positive tone to today across the globe, hence crude oil is back on an even keel after the past two days of selling,” said Matt Smith, an analyst with Summit Energy in Kentucky, in a note to clients.
Oil picked up some steam after a gauge of business activity in the Chicago area accelerated to 64 in February, from 60.2 in January, the ISM-Chicago said Wednesday. Economists polled by MarketWatch had expected a decline to 60.
Earlier Wednesday, traders cheered news that the U.S. gross domestic product rose 3% in the fourth quarter, faster than the initial previously reported reading of 2.8%.
Economists surveyed by MarketWatch had predicted GDP growth would be revised down to 2.7%. Read more about fourth-quarter GDP growth.
Positive sentiment also grew from a successful borrowing program by the European Central Bank, restoring, at least for now, confidence in the European banking system and providing extra liquidity. Read more about ECB refinancing.
Investors are waiting to hear from the Energy Information Administration, due to report its weekly supply figures later Wednesday.
Analysts polled by Platts expect crude stocks to rise 1 million barrels, gasoline stockpiles to decline 180,000 barrels, and distillates inventories to decline 1.3 million barrels.
Meanwhile, other energy futures tracked oil higher, with March gasoline RBH2 +0.67% up 3 cents, or 1%, to $3.07 a gallon. March heating oil HOH2 -0.18% rose 1 cent, or 0.3%, to $3.23 a gallon.
