(RTTNews) - The price of crude oil was moving higher Wednesday morning as traders await cues from the official inventories data from the EIA, due out later during the session.
Light Sweet Crude Oil (WTI) futures for July were up $1.16 to $85.45 a barrel. Yesterday, oil ended higher on some upbeat economic data in the form of growth in the U.S. service sector and as well on bargain buying. The dollar remained firm with reports that the G7 nations failed to make any headway in the euro zone financial crisis resolution.
Tuesday after the market hours, the API said U.S. crude oil inventories fell by 1.8 million barrels, while gasoline stocks rose by 1.40 million barrels int eh weekended June 01.
This morning, the U.S. dollar was leveling off from its two-year high versus the euro and hovering around its five-month high against sterling. The buck continued to recover from its 4-month low versus the yen, while ticking lower against the Swiss franc.
In economic news, the euro zone economy stagnated in the first quarter, revised data from Eurostat showed, confirming that the single-currency bloc has escaped a fall-back into recession. The gross domestic product remained flat compared to the previous quarter after shrinking 0.3 percent in the fourth quarter of 2011. This matched the preliminary estimate.
Meanwhile, Germany's industrial production decreased more than expected in April, according to a report from the Federal Ministry of Economy and Technology. Industrial production fell 2.2 percent in April from a month ago, offsetting March's revised 2.2 percent increase. Economists were expecting a 1 percent fall for April.
The European Central Bank is expected to maintain the main refi rate at 1 percent, in its interest rate announcement due at 7.45 am ET . The central bank had reduced the rate in November and December, reversing the two hikes undertaken earlier last year.
Today during trading hours, the EIA will come out with its U.S. crude oil inventories report for the weekended June 01. Analysts expect crude oil inventories to dip by 500,000 barrels last week.
