The price of crude oil was moving higher Wednesday morning as traders await cues from the official inventories data due out later during the session.
The OPEC in its monthly oil market report released today said it sees little change in global oil demand growth in 2013, while noting that world oil demand is projected to grow at a higher rate of 1.0 mbd to average 90.7 mbd in 2014.
Light Sweet Crude Oil (WTI) futures for August delivery, gained $1.74 to $105.27 a barrel. Yesterday, oil settled higher ahead of the weekly supply data while tracking rising global equity markets despite the dollar strengthening against a basket of major currencies. Investors continued to remain focused on the increasingly fluid situation in Egypt, with fears of supply disruption through the Suez Canal, a major shipping route.
Tuesday after the market hours, the API said U.S. oil inventories fell by 9 million barrels in the weekended July 05, well above the decline of 3.8 million barrels analysts expected. Gasoline stocks were down 3.5 million barrels, the API said.
This morning the U.S. dollar was easing from its 6-week high versus the euro and a four-month high against sterling. The buck was hovering around its one-month high versus the Swiss franc and the yen.
In economic news from the euro zone, Germany's EU harmonized inflation accelerated in June as initially estimated, final data released by the Federal Statistical Office showed. Inflation as per the harmonized index of consumer prices increased to 1.9 percent in June from 1.6 percent in May. The outcome matched the preliminary estimates.
From the U.S., the Commerce Department will release its wholesale inventories report for May at 8:30 am ET. Economists expect wholesale inventories to have increased by 0.3 percent month-over-month in May.
The Federal Reserve is scheduled to release the minutes of its June 18-19 FOMC meeting at 2 pm ET.
Today during trading hours, the EIA will release its US crude oil inventories report for the weekended July 05. Analysts expect crude oil inventories to dip by 2.90 million barrels and gasoline stock to shed 200,000 barrels last week.
