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WTI oil re-approaches 2-week low ahead of ECB decision

Published 06/05/2014, 04:07 AM
Nymex oil futures trade near two-week low ahead of ECB outcome

Investing.com - West Texas Intermediate oil futures re-approached a two-week low hit earlier in the week on Thursday, as traders braced for a highly-anticipated European Central Bank meeting.

On the New York Mercantile Exchange, U.S. crude oil for delivery in July held in a range between $102.20 and $102.47 a barrel. Prices last traded at $102.27 during European morning hours, down 0.37%, or 38 cents.

U.S. oil futures dipped 0.02%, or 2 cents, on Wednesday to settle at $102.64 a barrel. Nymex prices hit a two-week low of $102.10 on June 2.

New York-traded oil futures were likely to find support at $101.69 a barrel, the low from May 20 and resistance at $103.69 a barrel, the high from June 4.

Bearish supply data released on Wednesday continued to weigh as high stockpiles of gasoline and diesel offset the impact of a drop in crude stocks.

Investors now looked ahead to the ECB's policy meeting later in the day amid mounting speculation the bank will cut its benchmark interest rate to a record-low 0.1% from the current 0.25% and launch a package of other stimulus measures at the conclusion of its policy meeting as a way to bolster low levels of inflation and sluggish growth.

Traders also awaited Friday's report on U.S. nonfarm payrolls for further indications on the strength of the U.S. job market after a data on Wednesday showed that private sector jobs rose less than expected last month.

Payroll processing firm ADP said non-farm private employment rose by 179,000 in May, below expectations for an increase of 210,000.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for July delivery dipped 0.23%, or 25 cents, to trade at $108.15 a barrel, while the spread between the Brent and U.S. crude contracts stood at $5.88 a barrel.

The spread closed at $5.76 on Wednesday, the narrowest since April 15, as receding stockpiles at Cushing, Oklahoma, the delivery point for Nymex oil futures, eased concerns over a supply glut.

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