IV:U.S. oil futures top $100 a barrel ahead of supply data
Investing.com - U.S. oil futures were higher on Wednesday, as market players awaited the release of weekly supply data out of the U.S. later in the session to gauge the strength of oil demand from the world’s largest consumer.
On the New York Mercantile Exchange, West Texas Intermediate crude oil for delivery in June rose to a daily high of $100.30 a barrel. Nymex oil last traded at $100.24 a barrel during European morning hours, up 0.74%, or 73 cents.
WTI oil inched up 0.02%, or 2 cents, on Tuesday to settle at $99.50.
Futures were likely to find support at $98.91 a barrel, the low from May 5 and resistance at $100.76 a barrel, the high from April 30.
Wednesday’s government report was expected to show that U.S. crude oil stockpiles rose by 1.4 million barrels last week. The data was also forecast to show that distillate stockpiles, including heating oil and diesel, increased by 1.0 million barrels.
After markets closed Tuesday, the American Petroleum Institute, an industry group, said that U.S. crude inventories fell by 1.8 million barrels in the week ended May 2, compared to expectations for an increase of 1.3 million barrels.
The report also showed that distillate stocks increased by 763,000 barrels, while gasoline stockpiles rose by 2.4 million barrels.
Meanwhile, investors awaited testimony from Federal Reserve Chair Janet Yellen later in the day. Yellen was expected to reiterate that the central bank intends to keep rates on hold for longer, in spite of last month’s stronger-than-forecast U.S. nonfarm payrolls report.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for June delivery shed 0.35%, or 38 cents, to trade at $107.34 a barrel, while the spread between the Brent and U.S. crude contracts stood at $7.10 a barrel.
Oil traders continued to monitor events in Ukraine, as conflict between the government and pro-Russian separatists continued to escalate, stoking fears that the crisis will develop and drag the U.S. deeper into the standoff.
The West is accusing Russia of leading a separatist revolt in eastern Ukraine after it annexed Crimea last month.
Russia produced 10.4 million barrels of oil per day in 2012 and exported 7.4 million, making it the world’s second largest oil exporter after Saudi Arabia.
