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Crude oil futures remain lower after U.S. supply data

Published 04/10/2013, 10:42 AM
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Investing.com - Crude oil futures held on to losses during U.S. morning hours on Wednesday, despite a U.S. government report which showed oil supplies rose less-than-expected last week.

On the New York Mercantile Exchange, light sweet crude futures for delivery in May traded at USD93.77 a barrel during U.S. morning trade, down 0.45% on the day.

New York-traded oil prices held in a range between USD93.42 a barrel, the daily low and a session high of USD94.14 a barrel. Nymex oil prices rose to a one-week high of USD94.97 a barrel on Tuesday.

Prices traded at USD93.87 a barrel prior to the release of the supply data.

The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories rose by 0.3 million barrels in the week ended April 5, below expectations for an increase of 1.4 million barrels.

Total U.S. crude oil inventories stood at 388.9 million barrels as of last week, the highest level since 1990.

The report also showed that total motor gasoline inventories increased by 1.7 million barrels, compared to expectations for a decline of 1.1 million barrels.

Oil prices were lower earlier in the day after minutes from the Federal Reserve’s March policy-setting meeting showed officials remained divided over how long they should stick to their ultra-loose monetary policy.

Minutes from the Fed’s March 19-20 meeting showed that a number of FOMC participants saw QE tapering around midyear, while others believed it would probably be appropriate to slow purchases later in the year and to stop them by year-end.

One member wanted to slow the bond purchases immediately, while two members indicated that the purchases might well continue at the current pace at least through the end of the year.

Also Wednesday, a government report showed that China posted a USD884 million surprise trade deficit for March compared with February's USD15.25 billion surplus. Economists had expected a USD15.4 billion surplus.

The data showed that Chinese imports rose 14.1% from a year earlier in March, blowing past expectations for a 6% increase and following a decline of 15.2% in February.

Exports grew 10% from a year earlier in March, below expectations for an 11.7% gain and down from a 21.8% increase in the previous month.

China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.

Elsewhere, on the ICE Futures Exchange, Brent oil futures for May delivery fell  0.65% to trade at USD105.52 a barrel, with the spread between the Brent and crude contracts standing at USD11.75 a barrel.

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