RTTN: OIL FUTURES: Crude Sinks Ahead Of Inventory Data
--Crude futures sink ahead of inventory report
--OPEC expected to keep production elevated
--Analysts see oil inventories rising 1.6M bbls
By Dan Strumpf
NEW YORK--Oil futures declined Wednesday ahead of a closely watched report on U.S. oil inventories and a meeting of the world's biggest oil exporters later this week.
Light, sweet crude for July delivery fell 96 cents, or 1.2%, to $82.36 a barrel on the New York Mercantile Exchange. Brent crude on ICE Futures Europe fell 21 cents, or 0.2%, to $96.93 a barrel.
Futures were lower ahead of the U.S. government's weekly report on oil and fuel stockpiles, expected to show oil inventories last week falling 1.6 million barrels and refiners trimming operations, according to a survey of analysts by Dow Jones Newswires.
But a report from the American Petroleum Institute, an industry group, late Tuesday bucked those expectations. The API said crude stocks last week rose 1.6 million barrels.
Oil market watchers closely follow the Energy Information Administration's weekly inventory survey for cues on supply and demand in the world's biggest oil consumer. Inventories last month were at their highest level since 1990, as demand remains weak amid sluggish economic growth.
Separately, traders are awaiting the outcome of a meeting of the Organization of Petroleum Exporting countries in Vienna Thursday. Saudi Arabia is widely expected to rebuff calls from other members to rein in elevated production.
"We're just waiting for the OPEC meeting to fall apart," said John Kilduff, founding partner at Again Capital. "I think that's going to end in disarray... and the Saudis will stand firm on their willingness to pump."
Saudi Arabia has boosted production in recent months amid increasingly stringent sanctions on Iran over the country's nuclear program. Iranian production has fallen to around 20,000 barrels ad ay, from around 3.5 million barrels a day at the end of last year, according to the Energy Information Administration.
Still, other members, including Libya and Iraq, have seen production return significantly over the last year.
Crude-oil prices have fallen more than 20% from their peak in the spring, as the deepening euro-zone crisis spurs fears about weakening global oil demand, and as production remains elevated in OPEC and elsewhere, including the U.S.
Front-month July reformulated gasoline blendstock, or RBOB, recently fell 0.43 cents, or 0.1%, to $2.6459 a gallon. July heating oil slipped 0.61 cents, or 0.2%, to $2.6164 a gallon.
