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Crude oil futures trade near 4-month high ahead of U.S. data, Fed

Published 01/30/2013, 04:17 AM
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Investing.com - Crude oil futures traded just below the previous session’s four-month high on Wednesday, ahead of the release of U.S. growth and employment data and the outcome of the Federal Reserve’s Open Market Committee.

Traders also looked ahead to closely-watched weekly supply data on U.S. stockpiles of crude and refined products from the U.S. Energy Information Administration later in the day.

On the New York Mercantile Exchange, light sweet crude futures for delivery in March traded at USD97.53 a barrel during European morning trade, little changed on the day.

New York-traded oil prices held in a tight trading range between USD97.31 a barrel, the daily low and a session high of USD97.68 a barrel. Oil futures hit USD97.82 a barrel on Tuesday, the strongest level since September 17.

Market participants were looking ahead to a series of major U.S. economic events, including preliminary data on U.S. fourth quarter growth and the outcome of the Federal Reserve’s policy setting meeting later Wednesday.

The U.S. was also to release data on January’s ADP nonfarm payrolls, ahead of Friday’s government data on nonfarm payrolls.

Oil traders were also anticipating weekly data from the U.S. government on oil and fuel supplies later in the day to gauge the strength of demand from the world’s largest oil consumer.

The report was expected to show that U.S. crude oil stockpiles increased by 2.6 million barrels last week, while gasoline inventories were forecast to fall by 108,000 barrels.

After markets closed Tuesday, the American Petroleum Institute, an industry group, said that U.S. crude inventories rose by 4.16 million barrels last week, while gasoline stocks increased 2.37 million barrels.

The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.

Also, China will release its official manufacturing data for January at the end of the week, providing investors with another chance to see whether the recovery in the world’s second largest economy remains on track.

China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.

Elsewhere, on the ICE Futures Exchange, Brent oil futures for March delivery dipped 0.05% to trade at USD114.30 a barrel, with the spread between the Brent and crude contracts standing at USD16.77 a barrel.

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