RTTN:Crude Edges Down Ahead Of Official Inventories Data
The price of crude oil was moving lower Wednesday morning as traders await cues from the official inventories data, due out later today.
Light Sweet Crude Oil (WTI) futures for March delivery, shed $0.58 to $96.06 a barrel. Yesterday, oil settled marginally higher tracking rising global equity markets and on some economic data from the U.S. and Europe which lifted hopes of global demand growth. There were continued concerns over disruption in oil supply from the Middle East with Syria, Algeria, and Egypt in focus.
Tuesday after the market hours, a report released by the API revealed that U.S. crude oil inventories rose 3.6 million barrels and gasoline stocks added 1.56 million barrels in the weekended February 01.
This morning, the U.S. dollar was lingering around its 14-month low versus the euro and hovering near its 5-month high against sterling. The buck was trading around its two-and half year high versus the yen and ticking higher against the Swiss franc.
In economic news from the euro zone, Germany's factory orders grew more than expected in December, reflecting robust orders from euro zone economies. Orders advanced 0.8 percent in December from a month ago, data published by the Federal Ministry of Economics and technology showed. The rate of increase was marginally above a 0.7 percent rise forecast by economists and reversed November's 1.8 percent drop.
A survey by Markit Economics showed that Germany's construction sector contracted for the tenth consecutive month in January, though at a slower rate than in the previous month. The seasonally adjusted purchasing managers' index for the construction sector increased to 47.7 in January from 43.3 in December, signaling a slower deterioration in operating conditions. An index reading below 50 indicates decline in activity.
Today during trading hours, the EIA will release its US crude oil inventories report for the weekended February 01. Analysts expect 2.65 million build in crude oil stocks and gasoline stockpiles to gain 900,000 barrels last week.
