IV:U.S. oil futures slip ahead of supply data, Fed decison
Investing.com - U.S. oil futures inched lower on Wednesday, as investors looked ahead to key U.S. weekly supply data due later in the day to gauge the strength of oil demand from the world’s largest consumer.
On the New York Mercantile Exchange, West Texas Intermediate crude for delivery in May held in a range between $98.40 a barrel and $98.76 a barrel.
WTI oil last traded at $98.61 a barrel during European morning hours, down 0.28%, or 28 cents. The May contract rallied 1.29%, or $1.26, to settle at $98.88 a barrel on Tuesday.
Nymex oil futures were likely to find support at $97.00 a barrel, the low from March 17 and resistance at $98.95 a barrel, the high from March 14.
Wednesday’s government report was expected to show that crude oil stockpiles rose by 2.6 million barrels last week. The data was also expected to show that distillate stockpiles, including heating oil and diesel, decreased by 625,000 barrels.
After markets closed Tuesday, the American Petroleum Institute, an industry group, said that U.S. crude inventories rose by 5.92 million barrels in the week ended March 14, compared to expectations for an increase of 2.6 million barrels.
The report also showed that distillate stocks fell by 674,000 barrels, while gasoline stockpiles decreased by 1.41 million barrels.
Meanwhile, investors were jittery ahead of the Federal Reserve's upcoming policy statement later in the day.
The U.S. central bank was widely expected to continue to roll back its bond purchasing program by $10 billion at the conclusion of its monthly meeting later Wednesday, the first with Janet Yellen at the helm.
Appetite for riskier assets remained supported after Russian President Vladimir Putin said Tuesday that Russia isn't seeking "a partition of Ukraine", signaling that Russia's moves in Ukraine would be limited.
The comments came during a speech to a joint session of parliament in Moscow, a day after the president recognized the results of Sunday's referendum in Crimea, which saw a majority of voters chose to split from Ukraine.
Elsewhere, on the ICE Futures Exchange in London, Brent oil futures for May delivery dipped 0.34%, or 36 cents, to trade at $106.44 a barrel, while the spread between the Brent and U.S. crude contracts stood at $7.83 a barrel.
