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Oil falls following U.S. inventories data

Published 06/26/2013, 08:35 PM
Updated 06/26/2013, 08:36 PM
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Investing.com - Oil futures traded modestly lower in the early part of Thursday’s Asian session as traders in the region digested a bearish batch of weekly inventories data out of the U.S.

On the New York Mercantile Exchange, light, sweet crude futures for August delivery inched down 0.09% to USD95.42 per barrel after settling down 0.06% at USD95.26 a barrel on Wednesday in the U.S.

Earlier Wednesday, the U.S. Energy Information Administration said in its weekly report earlier that U.S. crude oil inventories remained largely unchanged in the week ended June 21, confounding expectations for a decline of 1.7 million barrels.

Total U.S. crude oil inventories stood at 394.1 million barrels as of last week. Supplies climbed to 396.3 million earlier this month, the most since July 1981.

The report also showed that total motor gasoline inventories increased by 3.7 million barrels, above expectations for an increase of 855,000 barrels.

Oil was also dragged lower by a disappointing U.S. data point. In U.S. economic news published Wednesday, the U.S. Commerce Department said U.S. GDP grew 1.8% in the first quarter, well below the previous estimate of 2.4% growth. Growth in consumer spending was slashed to 2.6% from 3.4%. Only the home construction and government readings were not revised downward.

The U.S. is the world’s largest oil consumer.

Elsewhere, an Indian press report said ONGC Videsh and Oil India are looking to acquire oil and gas assets in the U.S. and Africa to boost production. ONGC Videsh is reportedly mulling the purchase of assets from Chesapeake Energy, the second-largest U.S. gas producer behind Exxon Mobil.

Meanwhile, Brent futures for August delivery inched down 0.01% to USD101.70 per barrel on the ICE Futures Exchange.


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