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WTI oil off the highs after bearish U.S. supply data

Published 03/25/2015, 10:34 AM
© Reuters.  U.S. oil futures come off the highs after bearish supply report
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Investing.com - West Texas Intermediate oil futures came off the highest levels of the session on Wednesday, after data showed that oil supplies in the U.S. rose to the highest level on record, exacerbating fears over a glut in supplies.

On the New York Mercantile Exchange, crude oil for May delivery rose 37 cents, or 0.78%, to trade at $47.88 a barrel during U.S. morning hours. Prices were at around $48.20 prior to the release of the inventory data.

The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories rose by 8.2 million barrels in the week ended March 20, compared to expectations for an increase of 5.2 million barrels.

The report also showed that total motor gasoline inventories decreased by 2.0 million barrels, compared to expectations for a drop of 1.6 million, while distillate stockpiles fell by 3,400 barrels.

Total U.S. crude oil inventories stood at 466.7 million barrels as of last week, the most in at least 80 years, underling concerns over a supply glut.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for May delivery climbed 88 cents, or 1.59%, to trade at $55.99 a barrel.

London-traded Brent futures remained supported amid indications the economic recovery in the euro zone is gaining traction.

Meanwhile, the spread between the Brent and the WTI crude contracts stood at $8.11 a barrel, compared to $7.60 by close of trade on Tuesday.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.35% to 97.10 early on Wednesday.

The U.S. Commerce Department said earlier that total durable goods orders, which include transportation items, declined by 1.4% last month, compared to expectations for a gain of 0.4%. Orders for durable goods in January were revised down to a 2.0% gain from a previously reported increase of 2.8%.

Core durable goods orders, excluding volatile transportation items, inched down 0.4% in February, disappointing forecasts for a 0.3% gain. Core durable goods orders fell 0.7% in January.

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