Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

WTI oil futures inch higher ahead of central banks, U.S. data

Published 02/06/2014, 03:59 AM
Updated 02/06/2014, 03:59 AM
U.S. oil prices edge higher ahead of ECB, U.S. data

U.S. oil prices edge higher ahead of ECB, U.S. data

Investing.com - U.S. oil futures inched higher on Thursday, as investors eyed upcoming policy statements by the European Central Bank and the Bank of England, as well as key U.S. economic data due later in the trading session.

On the New York Mercantile Exchange, West Texas Intermediate crude for delivery in March traded in a range between USD97.24 a barrel and USD97.68 a barrel.

The March Nymex oil contract last traded at USD97.62 a barrel during European morning hours, up 0.25%.

WTI oil prices rose to USD98.26 a barrel on Wednesday, the highest since January 31, before trimming gains to settle at USD97.38 a barrel, up 0.2%.

Nymex oil futures were likely to find support at USD96.37 a barrel, the low from February 4 and resistance at USD98.37 a barrel, the high from January 31.

Wednesday’s gains came after U.S. weekly supply data showed that crude oil inventories rose by 440,000 barrels last week, compared to expectations for an increase of 2.3 million barrels.

The report also showed that total motor gasoline inventories increased by 505,000 barrels, below forecasts for a gain of 1.5 million barrels, while distillate stockpiles declined by 2.4 million barrels.

Market players now looked ahead to key U.S. economic data later in the day for further indications on the strength of the economy and the future course of monetary policy.

The U.S. is to publish the weekly report on initial jobless claims as well as data on the trade balance.

Payroll processing firm ADP said Wednesday that non-farm private employment rose by a seasonally adjusted 175,000 last month, below expectations for an increase of 180,000.

While not viewed as a reliable guide for the government jobs report due on Friday, February 7, it does give guidance on private-sector hiring.

The Federal Reserve said it will keep a close eye on economic indicators before deciding to wind down its stimulus program even further.

The central bank tapered its monthly asset purchase program by another USD10 billion to USD65 billion a month at its last policy meeting.

Market players were also awaiting the ECB meeting amid speculation that the bank may tighten monetary policy in order to stave off deflation and shore up the fragile recovery in the region.

Elsewhere, on the ICE Futures Exchange in London, Brent oil futures for March delivery inched up 0.1% to trade at USD106.35 a barrel, while the spread between the Brent and U.S. crude contracts stood at USD8.73 a barrel.

The spread between the two contracts narrowed to a four-month low as the Keystone XL pipeline linking Cushing, Oklahoma, to the U.S. Gulf Coast began making deliveries last month. Flows will rise over the course of the year toward its 700,000-barrel capacity, which should help alleviate a glut of crude in the Midwest.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.