The price of crude oil was moving higher Thursday morning as traders await cues from the official inventories data and a batch of macroeconomic data, due out later today.
Light Sweet Crude Oil (WTI) futures for October delivery, added $0.57 to $107.80 a barrel. Yesterday, oil dropped sharply to end below $108 ahead of the official crude inventories data with investors weighing the prospects of military action against Syria by the U.S. and its allies. Oil futures ended at its lowest level since August 26, after having dropped below $107 during the session
Wednesday after the market hours, the API said US crude inventories fell by 4.2 million barrels and gasoline stocks shed 387,000 barrels in the weekended August 30, compared with analysts' expectations for a decline of 1.3 million barrels.
This morning the U.S. dollar was hovering around its 6-week high versus the euro and a three-week high against the Swiss franc. The buck was trading flat versus sterling and the yen.
In economic news from the euro zone, new orders in the German manufacturing sector decreased in July after recording strong growth in the previous month, preliminary estimates released by the Federal Ministry of Economics and Technology showed. New orders received by goods producers dropped a seasonally adjusted 2.7 percent sequentially in July, reversing the revised 5 percent increase recorded in June. Economists had forecast a slower decrease of 1 percent for July, following the previous month's originally reported 3.6 percent gain.
The European Central Bank is slated to announce its interest rate decision at 7.45 a.m ET. The bank is expected to retain its refi rate at a record low 0.50 percent.
Elsewhere, the Bank of England retained the asset purchase facility at GBP 375 billion and interest rate at a record low 0.50 percent.
From the U.S., the the ADP will release its U.S. private sector employment for August at 8:15 a.m. ET. Economists expect private payrolls to have expanded by 177,000, slower than the 200,000 pace seen for July.
The Labor Department is due to release its jobless claims report for the week ended August 31 at 8:30 a.m. ET. The consensus estimates call for a small dip in the weekly jobless claims to 330,000 from 331,000 in the previous week.
The Institute for Supply Management is scheduled to release the results of its non-manufacturing index at 10 a.m. ET. The consensus estimates call for a decline in the index to 55 in August from 56 in July.
Simultaneously, the Commerce Department will release its factory orders report for July. Economists expect a 3.4 percent decline in factory orders following a 1.5 percent increase in June.
Today during trading hours, the EIA will release its crude oil inventories report for the weekended August 30. Analysts expect crude oil inventories to ease 0.20 million barrels and gasoline stocks to shed 0.60 million barrels last week.
