Investing.com - Crude oil futures trimmed losses during U.S. morning trade on Wednesday, coming off the lowest level since mid-December following a U.S. government report on oil supplies.
On the New York Mercantile Exchange, light sweet crude futures for delivery in June traded at USD96.19 a barrel during U.S. morning trade, dropping 0.85%.
It earlier fell by as much as 2.3% to trade at USD95.22 a barrel, the lowest since December 20, 2011. The six-day decline is the longest since July 2010.
Crude prices traded at USD95.57 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 rose by 3.7 million barrels in the week ended May 4, above expectations for a 1.97 million barrel increase.
U.S. crude supplies rose by 2.84million barrels in the preceding week.
Oil prices came off their lows as markets blew a sigh of relief as the government report came after a day after the American Petroleum Institute, an industry group, said that U.S. crude inventories soared by 7.78 million barrels last week.
Total U.S. crude oil inventories stood at 379.5 million barrels as of last week, the highest level since August 1980, underscoring fears over a slowdown in oil demand from the U.S.
Total motor gasoline inventories decreased by 2.61 million barrels, compared to expectations for a modest 0.1 million barrel decline, after falling by 2.0 million barrels in the preceding week.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
Oil prices were sharply lower before the supply data as concerns over Greece’s future in the single currency bloc mounted on Tuesday after Alexis Tsipras, the head of Greece’s second-biggest party Syriza, declared that Greece's financial aid package is null and void, and called for a moratorium on Greek debt payments.
Tsipras was to hold talks with Greece’s leading political parties later in the day, as attempts to form a government continue, but a second round of elections is looking increasingly likely.
Adding to the gloomy trade environment was a report from German business newspaper Handelsblatt saying that German coalition lawmakers are open to a Greek exit from the euro zone.
The report includes a quote from Klaus-Peter Willsch of the CDU party, saying that Greece should be offered the chance to leave the euro in a controlled manner, while remaining in the European Union.
The risk of Greece leaving the euro by the end of 2013 has risen to as high as 75%, Citigroup said in a report dated May 7.
The political uncertainty fuelled fears that Greece will not have a government in place in time to secure its next tranche of international aid next month, as new elections look increasingly likely, fanning fears over a potential default and exit from the euro zone.
Investors were also eyeing developments in Spain. The yield on the country’s 10-year bonds rose above 6%, amid investor concerns that the debt crisis could spread from Greece.
Market players also remained concerned over whether French president-elect Francois Hollande’s focus on growth rather than austerity measures as a means to tackle the crisis could spark tensions with Germany.
There are worries that the region’s sovereign debt crisis could trigger a broader economic slowdown that would curb demand for oil. The euro zone accounted for nearly 12% of global oil consumption in 2010, according to data from British Petroleum.
Nymex crude prices have come under heavy selling pressure over the past week, losing nearly 9% since May 2, as concerns lingered over a widening economic slowdown that may cut demand for energy and as tensions have eased between Iran and Western nations over the country’s nuclear program.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for June delivery was down 0.5% to trade at 112.14 a barrel, with the spread between the Brent and crude contracts standing at USD15.95.
Brent crude, the European benchmark, is more than 12% off its intraday high of USD128.38 hit on March 1.
A potential loss of Iranian oil supplies has helped underpin strong gains in oil prices during late last year and the first quarter of this year.
But revived talks between Iran and major powers over Tehran's nuclear ambitions, along with rising Saudi Arabian and Libyan output and signs of slower U.S. economic and employment growth, helped pull oil prices back from first-quarter highs.
On the New York Mercantile Exchange, light sweet crude futures for delivery in June traded at USD96.19 a barrel during U.S. morning trade, dropping 0.85%.
It earlier fell by as much as 2.3% to trade at USD95.22 a barrel, the lowest since December 20, 2011. The six-day decline is the longest since July 2010.
Crude prices traded at USD95.57 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 rose by 3.7 million barrels in the week ended May 4, above expectations for a 1.97 million barrel increase.
U.S. crude supplies rose by 2.84million barrels in the preceding week.
Oil prices came off their lows as markets blew a sigh of relief as the government report came after a day after the American Petroleum Institute, an industry group, said that U.S. crude inventories soared by 7.78 million barrels last week.
Total U.S. crude oil inventories stood at 379.5 million barrels as of last week, the highest level since August 1980, underscoring fears over a slowdown in oil demand from the U.S.
Total motor gasoline inventories decreased by 2.61 million barrels, compared to expectations for a modest 0.1 million barrel decline, after falling by 2.0 million barrels in the preceding week.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
Oil prices were sharply lower before the supply data as concerns over Greece’s future in the single currency bloc mounted on Tuesday after Alexis Tsipras, the head of Greece’s second-biggest party Syriza, declared that Greece's financial aid package is null and void, and called for a moratorium on Greek debt payments.
Tsipras was to hold talks with Greece’s leading political parties later in the day, as attempts to form a government continue, but a second round of elections is looking increasingly likely.
Adding to the gloomy trade environment was a report from German business newspaper Handelsblatt saying that German coalition lawmakers are open to a Greek exit from the euro zone.
The report includes a quote from Klaus-Peter Willsch of the CDU party, saying that Greece should be offered the chance to leave the euro in a controlled manner, while remaining in the European Union.
The risk of Greece leaving the euro by the end of 2013 has risen to as high as 75%, Citigroup said in a report dated May 7.
The political uncertainty fuelled fears that Greece will not have a government in place in time to secure its next tranche of international aid next month, as new elections look increasingly likely, fanning fears over a potential default and exit from the euro zone.
Investors were also eyeing developments in Spain. The yield on the country’s 10-year bonds rose above 6%, amid investor concerns that the debt crisis could spread from Greece.
Market players also remained concerned over whether French president-elect Francois Hollande’s focus on growth rather than austerity measures as a means to tackle the crisis could spark tensions with Germany.
There are worries that the region’s sovereign debt crisis could trigger a broader economic slowdown that would curb demand for oil. The euro zone accounted for nearly 12% of global oil consumption in 2010, according to data from British Petroleum.
Nymex crude prices have come under heavy selling pressure over the past week, losing nearly 9% since May 2, as concerns lingered over a widening economic slowdown that may cut demand for energy and as tensions have eased between Iran and Western nations over the country’s nuclear program.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for June delivery was down 0.5% to trade at 112.14 a barrel, with the spread between the Brent and crude contracts standing at USD15.95.
Brent crude, the European benchmark, is more than 12% off its intraday high of USD128.38 hit on March 1.
A potential loss of Iranian oil supplies has helped underpin strong gains in oil prices during late last year and the first quarter of this year.
But revived talks between Iran and major powers over Tehran's nuclear ambitions, along with rising Saudi Arabian and Libyan output and signs of slower U.S. economic and employment growth, helped pull oil prices back from first-quarter highs.