RTTN:Crude Firm Ahead Of Official Inventories Data
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.
Earlier today, the International Energy Agency nudged down global oil demand projection to 90.7 million barrels per day (mbd) for 2013 , which is 90,000 bd less than forecast last month.
Light Sweet Crude Oil (WTI) futures for March delivery, gained $0.25 to $97.76 a barrel. Yesterday, oil settled higher tracking rising global equity markets with demand growth prospects brightening after the OPEC raised its demand outlook for 2013. Oil prices also found support with the dollar weakening after the Group of Seven finance ministers meet on currencies and worries over supplies from the Middle East amid tension over North Korea's nuclear test
Tuesday after the market hours, the API said crude oil inventories dipped 2.3 million barrels and gasoline stocks shed 810,000 barrels in the weekended February 08.
This morning, the U.S. dollar was leveling off from its 3-week high versus the euro, while advancing toward a fresh 6-month high against sterling. The buck was hovering around its two-and half year high versus the yen and ticking higher against the Swiss franc.
In economic news, euro zone industrial production decreased at a slower pace in December, but the rate of fall exceeded economists' forecast, latest data showed. Industrial production decreased 2.4 percent on an annual basis in December, following the previous month's 4 percent fall, Eurostat said. Economists had forecast a more modest decline of 2.3 percent.
Germany's wholesale price inflation eased to its lowest level in six months in January, data from the Federal Statistical Office showed. The wholesale price index rose 2.3 percent year-on-year in January, slower than a 3.2 percent rise in December. Economists expected the rate of inflation to slow to 2.2 percent.
Traders will look to the retail sales report for January from the U.S. Commerce Department, due out at 8:30 am ET. Economists expect retail sales growth of 0.1 percent for January compared to a 0.5 percent increase in the previous month. Excluding autos, retail sales are expected to have increased by 0.2 percent, slower than the 0.3 percent growth in December.
Simultaneously, the Labor Department will release its export and import price indexes for January. The consensus expectations call for a 0.3 percent increase in export prices and a 0.8 percent increase in import prices. In December, export and price prices fell 0.1 percent each.
The Commerce Department is scheduled to release its business inventories report at 10 am ET. Economists expect business inventories at the end of December to have increased by 0.3 percent, the same pace in the previous month.
Today during trading hours, the EIA will come out with its US crude oil inventories report for the weekended February 08. Analysts expect crude oil stocks to gain 2.2 million barrels and gasoline stocks to add 500,000 barrels last week.
