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WTI oil holds steady near 2-week low ahead of U.S. supply data

Published 06/03/2014, 04:08 AM
U.S. oil little changed near 2-week low ahead of supply report
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Investing.com - West Texas Intermediate oil futures were little changed near the previous session’s two-week low on Tuesday, as market players awaited key U.S. weekly supply data to gauge the strength of oil demand from the world’s largest consumer.

On the New York Mercantile Exchange, U.S. crude oil for delivery in July held in a range between $102.37 a barrel and $102.67. Prices last traded at $102.49 during European morning hours, up 0.01, or 2 cents.

U.S. oil futures fell to $102.10 on Monday, the lowest since May 20, before settling at $102.47, down 0.23%, or 24 cents.

New York-traded oil futures were likely to find support at $101.69 a barrel, the low from May 20 and resistance at $103.35 a barrel, the high from June 2.

The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles rose by 0.2 million barrels in the week ended May 30.

Meanwhile, investors digested mixed data on China’s economy. China’s final HSBC Purchasing Managers Index for May released earlier came in at 49.4, down from a preliminary estimate of 49.7, but higher then April's reading of 48.1.

A separate report showed that activity in the country's services sector improved to a six-month high in May. Chinese non-manufacturing PMI rose to 55.5 from 54.8 in April.

The U.S. and China are the world’s two biggest energy consumers.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for July delivery dipped 0.14%, or 15 cents, to trade at $108.68 a barrel, while the spread between the Brent and U.S. crude contracts stood at $6.19 a barrel.

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