RTTN:Crude Slips Ahead Of Official Inventories Data
(RTTNews) - The price of crude oil was moving lower Wednesday morning as traders await cues from the official inventories data, due out later during the session. Reports of a possible release of U.S. strategic petroleum reserves also weighed on crude prices.
Light Sweet Crude Oil (WTI) futures for May delivery, lost $1.02 to $106.31 a barrel. Crude oil futures closed higher for a third straight day Tuesday, despite a strengthening dollar on some soft economic data from the U.S. Home prices in major U.S. metropolitan areas dipped to a 10-year low in January, while a Conference Board report showed a modest pullback in consumer confidence in March.
Tuesday after the market hours, the API said crude oil inventories jumped 3.60 million barrels and gasoline stocks added 1.3 million barrels in the weekended March 23.
This morning, the U.S. dollar was lingering around its one-month low versus the euro and trading flat against sterling, the Swiss franc and the yen.
From the euro zone, economic contraction in the U.K. during the fourth quarter was worse than estimated initially, revised data released by the Office for National Statistics showed. Gross domestic product fell 0.3 percent from the third quarter, compared to the previously estimated 0.2 percent decline. Meanwhile, the third quarter GDP growth was revised up to 0.6 percent from 0.5 percent estimated previously. For the year 2011, GDP in volume terms increased 0.7 percent.
Traders will look to the report on durable goods order from the US Commerce Department, due out at 8.30 am ET. Economists expect a 2.9 percent increase in durable goods orders for February. Excluding transportation, orders may have risen 1.5 percent. In January, durable goods orders fell 3.7 percent month-over-month following three straight months of gains.
Today during trading hours, the Energy Information Administration will release its US crude oil inventories report for the weekended March 23. Analysts expect crude oil inventories to jump 2.55 million barrels, while gasoline stocks are seen easing 1.55 million barrels last week.
