Investing.com - Crude oil futures edged higher on Wednesday, as market players looked ahead to the release of key U.S. weekly supply data to gauge the strength of oil demand from the world’s largest consumer.
Lingering uncertainty over the future of the Federal Reserve's stimulus program and fading fears over a disruption to supplies from the Middle East limited gains.
On the New York Mercantile Exchange, light sweet crude futures for delivery in November traded at USD103.65 a barrel during European morning trade, up 0.5%.
New York-traded oil futures held in a range between USD103.23 a barrel, the daily low and a session high of USD103.73 a barrel.
The November contract settled down 0.45% at USD103.13 a barrel on Tuesday, after falling to a session low of USD102.30, the weakest level since August 8.
Oil futures were likely to find support at USD102.28 a barrel, the low from August 8 and resistance at USD106.11 a barrel, the high from September 20.
Oil traders looked ahead to data from the U.S. government on oil and fuel supplies later in the day to gauge the strength of demand from the world’s largest oil consumer.
The report was expected to show that U.S. crude oil stockpiles declined by 1.1 million barrels last week, while gasoline inventories were forecast to rise by 0.15 million barrels.
After markets closed Tuesday, the American Petroleum Institute, an industry group, said that U.S. crude inventories fell by 540,000 million last week, compared to expectations for a decline of 1.5 million barrels.
The API also said gasoline stockpiles increased by 341,000 barrels.
Oil prices fell to an eight-week low on Tuesday as fears over a disruption to supplies from the Middle East continued to fade away.
Futures surged to a 27-month high of USD112.22 a barrel on August 28 amid indications the U.S. was close to taking military action against Syria for its alleged use of chemical weapons against civilians.
But prices have since lost nearly 8% after the U.S. and Russia reached a diplomatic solution on how to handle Syria’s chemical weapons on September 14.
While Syria is not a major oil producer, investors fear that the two-year-old civil war could spill over to affect oil supplies in nearby countries.
Reports that Libyan oil production is on the rise after protesters reopened access to facilities also added to the selling pressure, as did talk that oil output in Nigeria is recovering.
Countries in the Middle East and Africa were responsible for nearly 35% of global oil production in 2012.
Ongoing uncertainty over the future of the Federal Reserve's stimulus program also weighed.
The Federal Reserve’s stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for November delivery advanced 0.5% to trade at USD109.18 a barrel, with the spread between the Brent and crude contracts standing at USD5.53 a barrel.
Lingering uncertainty over the future of the Federal Reserve's stimulus program and fading fears over a disruption to supplies from the Middle East limited gains.
On the New York Mercantile Exchange, light sweet crude futures for delivery in November traded at USD103.65 a barrel during European morning trade, up 0.5%.
New York-traded oil futures held in a range between USD103.23 a barrel, the daily low and a session high of USD103.73 a barrel.
The November contract settled down 0.45% at USD103.13 a barrel on Tuesday, after falling to a session low of USD102.30, the weakest level since August 8.
Oil futures were likely to find support at USD102.28 a barrel, the low from August 8 and resistance at USD106.11 a barrel, the high from September 20.
Oil traders looked ahead to data from the U.S. government on oil and fuel supplies later in the day to gauge the strength of demand from the world’s largest oil consumer.
The report was expected to show that U.S. crude oil stockpiles declined by 1.1 million barrels last week, while gasoline inventories were forecast to rise by 0.15 million barrels.
After markets closed Tuesday, the American Petroleum Institute, an industry group, said that U.S. crude inventories fell by 540,000 million last week, compared to expectations for a decline of 1.5 million barrels.
The API also said gasoline stockpiles increased by 341,000 barrels.
Oil prices fell to an eight-week low on Tuesday as fears over a disruption to supplies from the Middle East continued to fade away.
Futures surged to a 27-month high of USD112.22 a barrel on August 28 amid indications the U.S. was close to taking military action against Syria for its alleged use of chemical weapons against civilians.
But prices have since lost nearly 8% after the U.S. and Russia reached a diplomatic solution on how to handle Syria’s chemical weapons on September 14.
While Syria is not a major oil producer, investors fear that the two-year-old civil war could spill over to affect oil supplies in nearby countries.
Reports that Libyan oil production is on the rise after protesters reopened access to facilities also added to the selling pressure, as did talk that oil output in Nigeria is recovering.
Countries in the Middle East and Africa were responsible for nearly 35% of global oil production in 2012.
Ongoing uncertainty over the future of the Federal Reserve's stimulus program also weighed.
The Federal Reserve’s stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for November delivery advanced 0.5% to trade at USD109.18 a barrel, with the spread between the Brent and crude contracts standing at USD5.53 a barrel.