Investing.com – Crude oil futures were down on Thursday, pulling back from a five-week high as some mild-profit taking emerged after Wednesday’s sharp gains, while a broadly stronger U.S. dollar also weighed.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in October traded at USD88.84 a barrel during European morning trade, slumping 0.55%.
It earlier fell as much as 0.9% to trade at a daily low of USD88.61 a barrel.
Prices rallied nearly 3.9% on Wednesday to hit USD90.39 a barrel, the highest since August 4 as strong gains in global equity markets and a weaker U.S. dollar boosted prices.
However, the rally prompted some investors to sell their position and lock in gains ahead of the release of the U.S. Energy Department’s weekly report on crude and gasoline supplies later in the day.
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.
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.
Meanwhile, a stronger greenback weighed on crude futures, as it makes dollar-priced commodities more expensive for holders of other currencies. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.2% to trade at 75.67.
Crude prices came under further pressure after the U.S. Energy Information Administration said Wednesday in its monthly short-term outlook that world oil demand would grow “less robustly” this year and the next, citing a weaker outlook for global economic growth.
The EIA said it expects world consumption to rise by 1.4 million barrels per day in both 2011 and 2012, slightly lower from the previous month’s forecast.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for October delivery retreated 0.87% to trade at USD114.87 a barrel, up USD26.02 a barrel on its U.S. counterpart.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in October traded at USD88.84 a barrel during European morning trade, slumping 0.55%.
It earlier fell as much as 0.9% to trade at a daily low of USD88.61 a barrel.
Prices rallied nearly 3.9% on Wednesday to hit USD90.39 a barrel, the highest since August 4 as strong gains in global equity markets and a weaker U.S. dollar boosted prices.
However, the rally prompted some investors to sell their position and lock in gains ahead of the release of the U.S. Energy Department’s weekly report on crude and gasoline supplies later in the day.
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.
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.
Meanwhile, a stronger greenback weighed on crude futures, as it makes dollar-priced commodities more expensive for holders of other currencies. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.2% to trade at 75.67.
Crude prices came under further pressure after the U.S. Energy Information Administration said Wednesday in its monthly short-term outlook that world oil demand would grow “less robustly” this year and the next, citing a weaker outlook for global economic growth.
The EIA said it expects world consumption to rise by 1.4 million barrels per day in both 2011 and 2012, slightly lower from the previous month’s forecast.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for October delivery retreated 0.87% to trade at USD114.87 a barrel, up USD26.02 a barrel on its U.S. counterpart.