Investing.com - Oil prices dropped in U.S. trading on Wednesday after a slew of disappointing economic indicators in Europe and the U.S. dampened spirits and fanned concerns the global economy continues to battle headwinds and will demand less fuels and energy as a result.
U.S. inventory data offset losses.
On the New York Mercantile Exchange, light sweet crude futures for delivery in June traded down 0.94% at USD93.32 a barrel on Wednesday, off from a session high of USD94.42 and up from an earlier session low of USD92.16.
Government data released earlier revealed that U.S. industrial production fell more than expected in April, contracting 0.5% after expanding a revised 0.3% in March.
Analysts were expecting industrial production, which gauges output at the country's factories, mines and utilities, to contract by 0.2% last month.
Prices at the wholesale level in the U.S. disappointed as well.
The U.S. Department of Labor said the country's producer price index fell 0.7% in April, outpacing analysts calls for a 0.6% fall and beyond the 0.6% decline during the previous month.
Core producer price inflation, which excludes food and energy, rose 0.1% last month, in line with expectations after a 0.2% increase the previous month.
A regional manufacturing barometer in the U.S. disappointed as well.
The Federal Reserve Bank of New York's Empire State manufacturing index slid to minus 1.4 in May, from a reading of 3.1, disappointing expectations for a rise to 4.0.
Europe saw its share of disappointing indicators as well.
Preliminary data showed that eurozone's gross domestic product contracted 0.2% in the first quarter, more than market calls for a 0.1% contraction though an improvement from a 0.6% decline in the previous quarter.
Germany's GDP rose less than expected in the first quarter, expanding 0.1% after a 0.7% decline in the previous quarter.
Still, analysts had expected the largest European economy to rise 0.3% in the first quarter.
Year-on-year, the German economy contracted by 1.7%, outpacing expectations for a 0.2% a rise after an increase of 0.1% in the fourth quarter.
Better-than-expected U.S. inventory data curbed losses.
The U.S. Energy Information Administration said in its weekly oil and gasoline stockpile data earlier that crude oil stocks fell by 624,000 barrels last week, more than market calls for a decline of 330,000 barrels, suggesting greater demand than anticipated.
Total gasoline inventories rose by 2.59 million barrels, defying market calls for a decrease of 780,000.
The U.S. is the world’s biggest oil consuming country, responsible for almost 22% of global oil demand.
Elsewhere on the ICE Futures Exchange, Brent oil futures for July delivery were down 0.51% at USD101.99 a barrel, up USD8.67 from its U.S. counterpart.
U.S. inventory data offset losses.
On the New York Mercantile Exchange, light sweet crude futures for delivery in June traded down 0.94% at USD93.32 a barrel on Wednesday, off from a session high of USD94.42 and up from an earlier session low of USD92.16.
Government data released earlier revealed that U.S. industrial production fell more than expected in April, contracting 0.5% after expanding a revised 0.3% in March.
Analysts were expecting industrial production, which gauges output at the country's factories, mines and utilities, to contract by 0.2% last month.
Prices at the wholesale level in the U.S. disappointed as well.
The U.S. Department of Labor said the country's producer price index fell 0.7% in April, outpacing analysts calls for a 0.6% fall and beyond the 0.6% decline during the previous month.
Core producer price inflation, which excludes food and energy, rose 0.1% last month, in line with expectations after a 0.2% increase the previous month.
A regional manufacturing barometer in the U.S. disappointed as well.
The Federal Reserve Bank of New York's Empire State manufacturing index slid to minus 1.4 in May, from a reading of 3.1, disappointing expectations for a rise to 4.0.
Europe saw its share of disappointing indicators as well.
Preliminary data showed that eurozone's gross domestic product contracted 0.2% in the first quarter, more than market calls for a 0.1% contraction though an improvement from a 0.6% decline in the previous quarter.
Germany's GDP rose less than expected in the first quarter, expanding 0.1% after a 0.7% decline in the previous quarter.
Still, analysts had expected the largest European economy to rise 0.3% in the first quarter.
Year-on-year, the German economy contracted by 1.7%, outpacing expectations for a 0.2% a rise after an increase of 0.1% in the fourth quarter.
Better-than-expected U.S. inventory data curbed losses.
The U.S. Energy Information Administration said in its weekly oil and gasoline stockpile data earlier that crude oil stocks fell by 624,000 barrels last week, more than market calls for a decline of 330,000 barrels, suggesting greater demand than anticipated.
Total gasoline inventories rose by 2.59 million barrels, defying market calls for a decrease of 780,000.
The U.S. is the world’s biggest oil consuming country, responsible for almost 22% of global oil demand.
Elsewhere on the ICE Futures Exchange, Brent oil futures for July delivery were down 0.51% at USD101.99 a barrel, up USD8.67 from its U.S. counterpart.