Investing.com – Crude oil futures were down on Wednesday, pressured by a broadly stronger U.S. dollar and after industry data showed that U.S. crude stockpiles fell less-than-expected last week.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in July traded at USD98.54 a barrel during European morning trade, tumbling 1%.
It earlier fell by as much as 1.2% to a daily low of USD98.27 a barrel.
Data released by the American Petroleum Institute on Tuesday showed that U.S. crude inventories declined by 0.86 million barrels last week, falling short of expectations for a withdrawal of 1.3 million barrels.
Gasoline inventories rose 2.4 million barrels a week before the Memorial Day weekend, the official start of the U.S. summer driving season. Analysts had expected an increase of 0.3 million barrels.
The U.S. Energy Department was to release its closely-watched crude oil inventories report for the week ended May 20 later in the day.
The data was expected to show that U.S. crude oil stockpiles declined by 1.6 million barrels, while gasoline supplies were forecast to rise by 0.4 million barrels.
Meanwhile, the U.S. dollar strengthened against the euro amid ongoing fears about Greece's finances and Europe's spreading debt crisis. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.34% to hit 76.31.
A stronger dollar makes U.S. commodities more expensive for importers holding other currencies.
Despite the recent volatility in oil prices, global financial service provider Barclays said that the balance of risk for crude remains “heavily biased to the upside.”
“We see current prices as a solid floor, and while short-term downside risk emanating from external events like sovereign-debt crises cannot be ruled out, the highs for the year are not in yet,” the bank said in a report published earlier in the day.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for July delivery fell 0.72% to trade at USD111.50 a barrel, up USD12.96 on its U.S. counterpart.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in July traded at USD98.54 a barrel during European morning trade, tumbling 1%.
It earlier fell by as much as 1.2% to a daily low of USD98.27 a barrel.
Data released by the American Petroleum Institute on Tuesday showed that U.S. crude inventories declined by 0.86 million barrels last week, falling short of expectations for a withdrawal of 1.3 million barrels.
Gasoline inventories rose 2.4 million barrels a week before the Memorial Day weekend, the official start of the U.S. summer driving season. Analysts had expected an increase of 0.3 million barrels.
The U.S. Energy Department was to release its closely-watched crude oil inventories report for the week ended May 20 later in the day.
The data was expected to show that U.S. crude oil stockpiles declined by 1.6 million barrels, while gasoline supplies were forecast to rise by 0.4 million barrels.
Meanwhile, the U.S. dollar strengthened against the euro amid ongoing fears about Greece's finances and Europe's spreading debt crisis. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.34% to hit 76.31.
A stronger dollar makes U.S. commodities more expensive for importers holding other currencies.
Despite the recent volatility in oil prices, global financial service provider Barclays said that the balance of risk for crude remains “heavily biased to the upside.”
“We see current prices as a solid floor, and while short-term downside risk emanating from external events like sovereign-debt crises cannot be ruled out, the highs for the year are not in yet,” the bank said in a report published earlier in the day.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for July delivery fell 0.72% to trade at USD111.50 a barrel, up USD12.96 on its U.S. counterpart.