Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Crude rises as market digests GDP data, inventory numbers cap gains

Published 01/30/2013, 01:00 PM
Updated 01/30/2013, 01:01 PM
TTEF
-
LCO
-
CL
-
Investing.com - Crude oil futures rose in U.S. trading on Wednesday after investors digested U.S. fourth-quarter gross domestic product figures and concluded that the broader economy remains healthy despite an overall contraction.

Rising inventories dampened spirits, however.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in March traded at USD97.71 a barrel on Wednesday, up 0.14%, off from a session high of USD98.24 and up from an earlier session low of USD97.31.

The U.S. economy shrank in the fourth quarter though energy markets viewed the numbers with cautious approval.

The Commerce Department reported earlier that the U.S. gross domestic product contracted for the first time since the second quarter of 2009 in the three months ending December, shrinking by 0.1%.

Economists were forecasting growth of 1.1% after a 3.1% expansion in the preceding quarter.

A 6.6% decline in government spending and a drop in private inventories contributed to the contraction, though the government added that consumer spending rose by 2.2% and business investment was 8.8% higher in the fourth quarter of last year, which was bullish for crude.

Elsewhere, payroll processor ADP revealed that the U.S. private sector added 192,000 jobs in January, well above expectations for an increase of 165,000, which fueled gains, though supply data dampened spirits.

The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories rose by 5.9 million barrels in the week ended Jan. 25 compared to expectations for an increase of 2.58 million barrels.

Total U.S. crude oil inventories stood at 369.1 million barrels as of last week.

The report also showed that total motor gasoline inventories decreased by 1 million barrels, compared to expectations for a decline of 100,000 barrels.

Elsewhere on the ICE Futures Exchange, Brent oil futures for March delivery were up 0.24% at USD114.64 a barrel, up USD16.93 from its U.S. counterpart.








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.