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Crude oil futures inch higher ahead of supply data, Obama speech

Published 09/08/2011, 09:59 AM
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Investing.com – Crude oil futures inched higher on Thursday, erasing earlier losses as markets awaited the release of government data on U.S. crude oil inventories, as well as highly-anticipated speeches from Federal Reserve Chairman Ben Bernanke and President Barack Obama.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in October traded at USD89.66 a barrel during U.S. morning trade, gaining 0.35%.  

It earlier fell as much as 0.9% to trade at a daily low of USD88.61 a barrel.

Markets were awaiting fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of oil demand in the world’s largest oil consumer.

The data was expected to show that U.S. crude oil stockpiles fell by 2.2 million barrels, while gasoline supplies were forecast to drop by 1.4 million barrels, as Hurricane Irene prompted a number of oil producers in the Gulf of Mexico to halt production.

After markets closed Wednesday, the American Petroleum Institute, an industry group, said that U.S. crude inventories fell by 2.97 million barrels, outstripping expectations for a 1.9 million barrel decline.

Total gasoline supplies dropped by 0.87 million barrels to 209.9 million, falling short of expectations for a 1.2 million barrel decline.

Wall Street bank JP Morgan Chase said in a report earlier, "The demand picture is a mixed bag in the U.S. with unemployment, stagnant income growth and efficiency weighing on oil and gasoline consumption."

The lender added that fears over the U.S. economic outlook and concerns over supply disruptions in Africa and in the North Sea was the main driver behind the record high premium between the crude and Brent contracts. 

Meanwhile, President Obama was to address a joint session of Congress later Thursday, where he was expected to announce a USD300 billion stimulus package to bolster the U.S. economy and spur job growth.

Oil traders will also be paying close attention to a speech from Fed Chief Ben Bernanke later in the day for any hints regarding further easing measures

Elsewhere, on the ICE Futures Exchange, Brent oil futures for October delivery added 0.11% to trade at USD116.00 a barrel, up USD26.34 a barrel on its U.S. counterpart, re-approaching the record high of USD26.87.  

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