Crude Oil Ends Slightly Lower After Supply Data, Fed Minutes

(RTTNews) - U.S. crude oil ended lower on Wednesday, after a weekly oil report from the U.S. Energy Information Administration showed stocks at Cushing in Oklahoma rose more than expected, even as crude oil stockpiles dropped more than expected last week.

Meanwhile, the Federal Reserve on Wednesday kept its benchmark interest rate unchanged near zero, without offering any explicit guidance to indicate as to when rates will be raised, despite a modest improvement in the economic outlook.

Earlier today, a weekly report from the U.S. Energy Information Administration said U.S. crude oil inventories dropped 2.7 million barrels in the week ended June 12, while analysts expected stocks to decline 2.4 million barrels. The report showed U.S. crude oil inventories at 467.9 million barrels end last week. This is the seventh straight week crude oil inventories declined.

EIA said oil production in the U.S. dipped to 9.59 million barrels a day, down by 21,000 barrels from a week earlier.

However, stocks at Cushing, Oklahoma, the key delivery point for Nymex crude, rose 112,000 barrels last week, while it was estimated to drop 850,000 barrels.

Gasoline stocks increased 0.5 million barrels last week, while inventories of distillate, including heating fuel, rose 0.1 million barrels last week.

Data from the oil and gas industry trade group American Petroleum Institute late Tuesday showed U.S. crude oil stocks to have plunged 2.9 million barrels last week.

Investors were also focused on Europe, with no progress seen in efforts at resolving Greece's financial woes. Failure to reach an agreement with creditors can put Greece on the 'painful' path of an exit from the euro and spark an uncontrollable crisis, Greece's central bank warned Wednesday.

Light Sweet Crude Oil futures for July delivery, the most actively traded contract, dipped $0.05 to settle at $59.92 a barrel on the New York Mercantile Exchange Wednesday.

Crude prices for July delivery scaled a high of $61.38 a barrel intraday and a low of $58.85.

On Tuesday, crude oil gained $0.45 or 0.8 percent, to settle at $59.97 a barrel, as investors awaited the U.S. supply data even as U.S. shale oil production continue to taper.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 94.39 on Wednesday, down from its previous close of 94.96 on Tuesday in late North American trade. The dollar scaled a high of 95.18 intraday and a low of 94.37.

The euro trended higher against the dollar at $1.1340 on Wednesday, as compared to its previous close of $1.1250 in North American trade late Tuesday. The euro scaled a high of $1.1341 intraday and a low of $1.1208.

On the economic front, eurozone construction output increased for a second straight month in April, although the rate of growth halved from the previous month, data from Eurostat showed Wednesday. Construction production in the euro area 19 countries rose 0.3 percent month-over-month in April, following 0.6 percent increase in March, revised from 0.8 percent.

U.K. unemployment held steady at its lowest level in nearly seven years during the three months to April, while pay growth was the strongest in four years, exceeding economists' forecast, figures from the Office for National Statistics showed Wednesday. The ILO jobless rate for the February to April period was 5.5 percent, down from 5.7 percent logged for the three months to January. It was also lower than the 6.6 percent recorded in the same period last year.

The unemployment rate was in line with economists' expectations and was the lowest since April-June 2008, when the figure was 5.4 percent. The number of unemployed declined by 43,000 from the previous three months to 1.81 million, the lowest since the June to August period of 2008.

Average earnings including bonuses grew 2.7 percent year-on-year during the three months to April. Economists had forecast 2.1 percent growth. The latest increase was the highest since June to August 2011, when pay grew 2.7 percent.

U.K. households were more downbeat about their finances in June, a survey by Markit Economics and financial information provider Ipsos Mori revealed Wednesday. The index dropped to 43.8 in June from 45.5 in May. The reading was the lowest score seen so far this year.

Elsewhere, Japan posted a merchandise trade deficit of 215.974 billion yen in May, the Ministry of Finance said on Wednesday. That beat forecasts for a shortfall of 258.8 billion yen following the downward revised 55.8 billion yen deficit in April (originally -53.44 billion yen).

Meanwhile, the Bank of Greece in its annual report said, "The conclusion of a new agreement with our partners is of the utmost importance to fend off the immediate risks to the economy, reduce uncertainty and ensure a sustainable growth outlook for Greece."

"An exit from the euro would only compound the already adverse environment, as the ensuing acute exchange rate crisis would send inflation soaring," the central bank added.