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Crude oil futures lower after inventories, U.S. data

Published 05/02/2012, 10:56 AM
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Investing.com - Crude oil futures fell to a fresh session low in U.S. morning trade on Wednesday, after U.S. government data showed that inventory levels rose last week and following the release of weaker-than-expected U.S. data.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in June traded at USD105.36 a barrel, shedding 0.72%.

The U.S. Energy Information Administration said oil stockpiles increased by 2.84 million barrels to 375.9 million last week.

Oil prices also came under pressure following the release of weaker-than-expected U.S. employment data for April.

Payroll processing firm ADP said the U.S. private sector added 119,000 jobs in April, far short of expectations for a gain of 177,000, after an increase of 209,000 in March. It was the smallest increase in ADP nonfarm payrolls since September 2011.

The data added to fears that the economic recovery in the U.S. is losing momentum, ahead of a government report on nonfarm payrolls on Friday, after government data in March showed a slowdown in hiring in the world’s largest oil consumer.

A separate report showed that factory orders in the U.S. declined in line with expectations in March, falling 1.5%, following a 1.1% increase the previous month.

In addition, fears over the economic outlook for the euro zone weighed on market sentiment after final euro zone manufacturing data for April slumped to a 34-month low, while the unemployment rate in the bloc climbed to a record 10.7% in March.

The euro zone data also indicated that the effects of the crisis in the region are spreading to core economies.

German manufacturing output fell at the fastest rate since July 2009, with its manufacturing PMI tumbling to 46.2, from 48.4 in March, while a separate report showed that the German unemployment rate also rose last month.

On the ICE Futures Exchange, Brent oil futures for June delivery were down 0.47% to trade at USD119.09 a barrel, up USD13.73 from its U.S. counterpart.


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