Investing.com – Crude oil futures declined on Wednesday, retreating from a three-day high as a broadly stronger U.S. dollar and rising U.S. gasoline supplies drove prices lower.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in July traded at USD98.81 a barrel during European morning trade, slumping 0.48%.
It earlier fell to a daily low of USD98.52 a barrel.
The U.S. dollar rose to a two-day high against the euro after euro zone finance ministers failed to reach an agreement on a second Greek bailout plan on Tuesday.
The dollar index was up 0.35% to trade at 75.07, after earlier rising to 75.14, a two-day high. Dollar-denominated oil futures contracts tend to rise when the dollar falls, as this makes oil cheaper for buyers in other currencies.
Meanwhile, the American Petroleum Institute, an industry group said in a report on Tuesday that U.S. gasoline inventories rose 1.1 million barrels last week, signaling fuel demand in the world’s largest consumer was slowing during the summer driving season.
U.S. crude inventories declined by 3 million barrels last week, while stocks of distillate fuels including heating oil and diesel decreased 0.42 million barrels.
The U.S. Energy Department was to release its closely-watched crude oil inventories report for the week ended June 10 later in the day.
The data was expected to show that U.S. crude oil stockpiles declined by 1.5 million barrels, while gasoline supplies were forecast to rise by 1.0 million barrels.
Crude prices rallied nearly 2% on Tuesday after a flurry of mostly upbeat economic data from the U.S. and China eased concerns over a slowdown in oil demand from the world’s two largest consumers.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for August delivery edged 0.2% lower to trade at USD119.06 a barrel, up USD20.25 on its U.S. counterpart.
Global financial service provider BNP Paribas said that the record-high spread between the crude and the Brent contract may be widening due to growing concerns about slowing economic growth in the U.S. compared to other parts of the world, which could hold back U.S. oil prices.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in July traded at USD98.81 a barrel during European morning trade, slumping 0.48%.
It earlier fell to a daily low of USD98.52 a barrel.
The U.S. dollar rose to a two-day high against the euro after euro zone finance ministers failed to reach an agreement on a second Greek bailout plan on Tuesday.
The dollar index was up 0.35% to trade at 75.07, after earlier rising to 75.14, a two-day high. Dollar-denominated oil futures contracts tend to rise when the dollar falls, as this makes oil cheaper for buyers in other currencies.
Meanwhile, the American Petroleum Institute, an industry group said in a report on Tuesday that U.S. gasoline inventories rose 1.1 million barrels last week, signaling fuel demand in the world’s largest consumer was slowing during the summer driving season.
U.S. crude inventories declined by 3 million barrels last week, while stocks of distillate fuels including heating oil and diesel decreased 0.42 million barrels.
The U.S. Energy Department was to release its closely-watched crude oil inventories report for the week ended June 10 later in the day.
The data was expected to show that U.S. crude oil stockpiles declined by 1.5 million barrels, while gasoline supplies were forecast to rise by 1.0 million barrels.
Crude prices rallied nearly 2% on Tuesday after a flurry of mostly upbeat economic data from the U.S. and China eased concerns over a slowdown in oil demand from the world’s two largest consumers.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for August delivery edged 0.2% lower to trade at USD119.06 a barrel, up USD20.25 on its U.S. counterpart.
Global financial service provider BNP Paribas said that the record-high spread between the crude and the Brent contract may be widening due to growing concerns about slowing economic growth in the U.S. compared to other parts of the world, which could hold back U.S. oil prices.