💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Crude oil holds on to gains after mixed U.S. inventory data

Published 08/24/2011, 11:05 AM
LCO
-
CL
-
Investing.com – Crude oil futures held on to gains on Wednesday, trading close to a four-day high after a government report showed a surprise drawdown in U.S. crude supplies last week, while gasoline inventories rose unexpectedly.

On the New York Mercantile Exchange, light sweet crude futures for delivery in October traded at USD85.61 a barrel during U.S. morning trade, climbing 0.2%. 

It earlier rose as much as 0.55% to trade at USD86.56 a barrel, the highest price since August 18.    

The contract traded at USD85.52 prior to the release of the Energy Information Administration data.

The U.S. EIA said in its weekly report that U.S. crude oil inventories declined by 2.2 million barrels in the week ended August 19, confounding expectations for a 0.8 million barrel increase.

U.S. crude supplies rose by 4.2 million barrels in the preceding week.

Total U.S. crude oil inventories stood at 351.8 million barrels as of last week, remaining above the upper limit of the average range for this time of year.

Total motor gasoline inventories increased by 1.4 million barrels, after falling by 3.5 million barrels in the preceding week and disappointing expectations for a 1.0 million barrel drawdown.  

Energy traders have been closely eyeing gasoline stockpiles in recent weeks to gauge the strength of U.S. demand, as the U.S. driving season is currently in the period of peak gasoline demand.

Meanwhile, markets continued to look ahead to Friday’s speech by Federal Reserve Chairman Ben Bernanke for any hints regarding fresh stimulus measures.

Elsewhere, on the ICE Futures Exchange, Brent oil futures for October delivery slipped 0.15% to trade at USD109.89 a barrel, up USD24.28 on its U.S. counterpart.

Markets were expected to monitor developments in Libya in order to asses how quickly oil production in the country would return to pre-war levels.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.