Investing.com - Oil futures traded lower in the early part of Thursday’s Asian session as traders in region digested surprisingly soft demand data and tepid economic reports out of the U.S., the world’s largest oil consumer.
On the New York Mercantile Exchange, light, sweet crude futures for November fell 0.36% to USD102.29 per barrel in Asian trading Thursday. The November contract settled lower by 0.46% at USD102.66 per barrel on Wednesday.
On Wednesday, the Energy Information Administration said that crude oil stockpiles rose by 2.64 million barrels in the week ending Sept. 20, defying expectations for a 1.13 million decline after a 4.37 million barrel drop in the previous week.
Gasoline inventories rose by 217,000 barrels last week, exceeding expectations for a 143,000 rise. That data sparked lower oil prices because the surprise increase in weekly inventories could be viewed as a sign of waning demand and that oil demand is not where it should be at this point in the U.S. economic recovery.
In U.S. economic news out Wednesday, the Commerce Department said durable goods orders rose 0.1% in August, but slid 8.1% in July after the number for that month was revised lower. Economists were expecting a 0.5% decrease in August. Excluding transportation, durable goods orders fell 0.1% last month, below the 1% increase economists forecast.
Separately, the Commerce Department said new home sales rose 7.9% last month to a seasonally adjusted rate of 421,000. On a year-over-year basis, that is a 12.6% increase. Economists expected an August reading of 425,000 units. Sales of new homes rose in all regions except the West.
Mediocre industrial and real estate data points like those could also prompt traders to view oil as vulnerable to further near-term downside.
Elsewhere, Brent crude futures for November delivery rose 0.13% to USD108.08 per barrel on the ICE Futures Exchange.
On the New York Mercantile Exchange, light, sweet crude futures for November fell 0.36% to USD102.29 per barrel in Asian trading Thursday. The November contract settled lower by 0.46% at USD102.66 per barrel on Wednesday.
On Wednesday, the Energy Information Administration said that crude oil stockpiles rose by 2.64 million barrels in the week ending Sept. 20, defying expectations for a 1.13 million decline after a 4.37 million barrel drop in the previous week.
Gasoline inventories rose by 217,000 barrels last week, exceeding expectations for a 143,000 rise. That data sparked lower oil prices because the surprise increase in weekly inventories could be viewed as a sign of waning demand and that oil demand is not where it should be at this point in the U.S. economic recovery.
In U.S. economic news out Wednesday, the Commerce Department said durable goods orders rose 0.1% in August, but slid 8.1% in July after the number for that month was revised lower. Economists were expecting a 0.5% decrease in August. Excluding transportation, durable goods orders fell 0.1% last month, below the 1% increase economists forecast.
Separately, the Commerce Department said new home sales rose 7.9% last month to a seasonally adjusted rate of 421,000. On a year-over-year basis, that is a 12.6% increase. Economists expected an August reading of 425,000 units. Sales of new homes rose in all regions except the West.
Mediocre industrial and real estate data points like those could also prompt traders to view oil as vulnerable to further near-term downside.
Elsewhere, Brent crude futures for November delivery rose 0.13% to USD108.08 per barrel on the ICE Futures Exchange.