Oil prices were little changed in Europe early Thursday, as the dollar held gains following the Federal Reserve`s decision to taper its bond purchasing program.
The sentiment remains quite shaky on the oil markets, as weak Chinese manufacturing data and the Fed`s decision to take another bite off its stimulus despite recent turbulence in emerging markets hurt crude prices. However, losses were subdued following a slump in US distillates stocks by more than double boosted demand hopes.
As of 03:40 a.m. EST:
- WTI crude oil rose 0.20% to $97.55 a barrel
- Brent Crude oil fell 0.03% to $107.82 a barrel
The bitter cold across the northern hemisphere boosted heating oil demand, but the Fed`s move to trim its monetary stimulus took its toll on gains.
Data from the Energy Information Administration (EIA) showed yesterday that US distillates supply dropped 4.6 million barrels last week, trailing analysts` average forecast of 2.2 million barrels decrease.
The stronger dollar continued to weigh on oil futures after the Fed decided to cut $10 billon off its $75 billion monthly bond-purchase program yesterday.
The USDIX, which tracks the performance of the greenback against a six-currency basket, was up 0.22% at 80.86 as of 09:13 GMT.
Another handful of economic fundamentals due to be released will be closely anticipated by the market today. The latest GDP figures from the world`s largest economy will tell us how strong the fourth quarter was, jobless claims will offer the latest on employment, while pending home sales will offer clues on what to expect for final sales of existing home.