IV:Crude oil futures decline after China inflation data
Investing.com - Crude oil futures were lower on Thursday, giving back some of the previous day’s strong gains after data showed that inflation in China accelerated at a faster rate than expected last month.
On the New York Mercantile Exchange, light sweet crude futures for delivery in June traded at USD96.25 a barrel during European morning trade, down 0.4% on the day.
New York-traded oil prices fell by as much as 0.5% earlier in the session to hit a daily low of USD96.17 a barrel.
Official data released earlier showed that consumer prices in China rose 2.4% in April from a year earlier, above expectations for a 2.3% increase and accelerating from a 2.1% rate of increase in March.
The faster-than-expected increase in the rate of inflation dampened hopes policy makers in Beijing could introduce fresh easing measures to boost economic growth in the world’s second largest economy.
China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.
Nymex prices rose more than 1% on Wednesday to trade just below a four-week high after a U.S. government report showed oil supplies rose less-than-expected last week.
U.S. crude oil inventories increased by 0.2 million barrels last week, below expectations for an increase of 1.8 million barrels.
Total U.S. crude oil inventories stood at 395.5 million barrels as of last week, the highest level since 1982.
The U.S. is the world’s biggest oil consuming country, responsible for almost 22% of global oil demand.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for June delivery shed 0.6% to trade at USD103.77 a barrel, with the spread between the Brent and crude contracts standing at USD7.52 a barrel, the narrowest gap since January 2011.
The gap between the two contracts has narrowed sharply in recent weeks, amid an improving production outlook in the North Sea and indications of declining stockpiles at Cushing, Oklahoma, the delivery point for Nymex oil futures.
Inventories at Cushing fell by 652,000 barrels to 49.1 million last week, according to data from the Energy Information Administration.
