Crude Oil Ends A Tad Higher After Supply Data

(RTTNews) - U.S. crude oil ended a tad higher on Wednesday, after a weekly official oil report from the U.S. Energy Information Administration showed crude stockpiles in the U.S. to have dropped more than expected last week.

Nonetheless, the gains were checked after data indicated ample supplies in the U.S. with stockpiles at Cushing, Oklahoma rising by 508,000 barrels to 20.7 million last week. It was the fourth straight week of gains.

Despite the ongoing issues north of Iraq, shipments of oil has been largely maintained from south of the country. Meanwhile, Libya too has lifted its oil exports notwithstanding the turmoil in Tripoli with fighting amongst several militant groups.

Earlier today, a report from the U.S. Energy Information Administration showed U.S. crude oil inventories to have dropped 2.1 million barrels in the week ended August 22, while analysts anticipated a decline of 1.3 million barrels. The EIA report showed U.S. crude oil inventories at 360.50 million barrels, end last week.

Gasoline stocks dropped by 1.0 million barrels last week, with analysts anticipating a decline of 1.1 million barrels. Inventories of distillate, including heating fuel, rose 1.3 million barrels last week.

A report from the American Petroleum Institute late Tuesday showed crude inventories to have declined by a less than expected 1.3 million barrels in the week ended August 22.

Investors continued to monitor closely the developments in Ukraine and the Middle East. The situation continues to be tense in Ukraine even after the Ukrainian President Petro Poroshenko and Russian President Vladimir Putin met in Belarus for the first time since June.

Reports say Putin has threatened economic sanctions on Ukraine for signing a trade accord with the European Union. Meanwhile, Ukraine has released a video footage of the Russian paratroopers it had detained on Tuesday.

Worries about Gaza have eased a bit with a long term ceasefire between Israel and the Palestinians taking effect this morning.

Light Sweet Crude Oil futures for October delivery, the most actively traded contract, gained $0.02 to close at $93.88 a barrel on the New York Mercantile Exchange Wednesday.

Crude prices for October delivery scaled a high of $94.24 a barrel intraday and a low of $93.36.

On Tuesday, crude oil futures ended higher, lifted by some upbeat U.S. economic data and on concerns over geopolitical tensions in Ukraine and the Middle East. Worries over weak demand from China and news about resumption of oil shipments from Libya limited oil's gains.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 82.43 on Wednesday, down from its previous close of 82.68 late Tuesday in North American trade. The dollar scaled a high of 82.73 intraday and a low of 82.40.

The euro trended higher against the dollar at $1.3195 on Wednesday, as compared to its previous close of $1.3167 late Tuesday in North American trade. The euro scaled a high of $1.3210 intraday and a low of $1.3153. In economic news from the eurozone, the leading economic indicators index rebounded in July, gaining 0.3 percent month-over-month, following the 0.1 percent drop in June. At the Jackson Hole Symposium last Friday, European Central Bank President Mario Draghi said the ECB might come out with more stimulus if inflation dropped further.

China's consumer sentiment dropped in August, results of a survey by MNI and Westpac showed Wednesday. The Westpac-MNI consumer sentiment index fell to 113.3 in August from 114.8 in July. The index was at 112.6 June.