The price of crude oil was little changed Wednesday morning as traders were cautious ahead of the official inventories data and the outcome of the 2-day FOMC meeting.
Light Sweet Crude Oil (WTI) futures for September delivery, edged up $0.12 to $103.20 a barrel. Yesterday, oil settled at a three-week low ahead of the weekly crude oil inventories report. Oil prices were also impacted with some mixed macroeconomic data out of the U.S. and the dollar strengthening against a few major currencies.
Tuesday after the market hours, the API said US crude oil inventories dipped 740,000 barrels, while gasoline stocks moved up 1.8 million barrels in the weekended July 26.
This morning the U.S. dollar was lingering around one-month low versus the euro and sterling, while ticking higher against the Swiss franc and the yen.
In economic news, retail sales in Germany declined unexpectedly in June, data published by the Federal Statistical Office showed. Retail sales fell a seasonally and calendar adjusted 1.5 percent month-on-month in real terms in June, reversing a 0.7 percent gain in May and a 0.3 percent increase in April. This was in contrast to economists' expectation for a 0.2 percent growth.
German unemployment declined in July, reports said citing the latest figures from the Labor Ministry. The number of unemployed fell by 7,000 persons in July from a month earlier. Economists had forecast no change in the unemployment figure.
The euro area unemployment rate remained stable at seasonally adjusted 12.1 percent in June, data from Eurostat showed. The statistical office revised May's jobless rate to 12.1 percent from 12.2 percent estimated on July 2. The June rate was seen at 12.2 percent.
A separate flash report from Eurostat showed that inflation held steady at 1.6 percent in July. The rate came in line with economists' expectations.
Traders will look to the private sector employment data out of the ADP, due out at 8.15 a.m ET. Economists expect the sector to have added 179,000 jobs in July compared to the 188,000 jobs added in June.
The Commerce Department is due to release its advance second quarter GDP estimate at 8:30 a.m. ET. The consensus estimates call for GDP growth of 1.1 percent for the second quarter, slower than the 1.8 percent growth for the first quarter.
Later during the session, the ISM-Chicago is scheduled to release the results of its regional manufacturing survey. Economists expect the business barometer for July to improve to 54 from 51.6 in June.
Today during trading hours, the EIA will release its US crude oil inventories report for the weekended July 26. Analysts expect crude oil stocks to shed 2.45 million barrels and gasoline stocks to move down 1.5 million barrels last week.
