Brent Oil prices were slightly up early Wednesday, as traders cautiously anticipated further hints about crude demand from the world`s top consumers.
The stronger dollar kept a a lid on US crude yesterday with growing speculation about the Federal Reserve`s policy outlook, while European crude inched higher on renewed geopolitical risk over Russia and supply disruptions in Nigeria and Libya. Meanwhile, focus shifts to the world`s largest economy before government data probably shows the crude stockpiles build up for a tenth consecutive week.
As of 03:58 a.m. ET:
- WTI Crude for May delivery rose 6 cents to $99.25, after settling lower at $99.19 a barrel yesterday
- Brent Crude rose 16 cents to $107.15, after settling higher at $106.99 a barrel yesterday.
The outlook of the world`s largest economy was boosted yesterday after the rise of US consumer sentiment to a six-year high in March, according to the Conference Board`s Consumer Confidence Index. However, Gains were limited after the American Petroleum Institute said crude inventories rose by 6.28 million barrels last week.
Today, The Energy Information Administration`s weekly petroleum report, due to be released later in the day, is expected to show US crude inventories increased 2.8 million barrels last week.
Trades will be also watching today`s durable goods report, expected to show that booking for US long-life manufactured goods rebounded 1.0% in February, according to analysts` median estimates.
Yesterday, the Commerce Department said new US homes sold at an annual rate of 440 thousand last month, down 3.3% from January`s one-year high, fueling doubts about the weak housing market, as the US Central Bank plans to trim its bond-purchasing program sooner than expected.
The outlook of the manufacturing sector was quite marred recently by data suggesting a slowdown in the factory output in the US and China, the world`s second-largest consumer of crude. Therefore if today`s durable goods report turn downbeat after January’s slump there might be a chance to see some bearishness in the oil markets.
Meawhile, the selling pressure remains in check amid easing worries over Ukraine, as world leaders agreed to hold off on more sanctions against Russia, the world`s top oil producer, unless Moscow extends its military action beyond the annexation of Crimea.
