Investing.com - Oil prices rose on Wednesday after weekly U.S. supply numbers came in stronger than expected, while a weaker dollar also bolstered the commodity's price.
A weaker greenback tends to make oil a nicely priced asset in dollar-denominated exchanges, especially in the eyes of investors holding other currencies.
On the New York Mercantile Exchange, light sweet crude futures for delivery in July traded up 0.44% at USD93.72 a barrel on Wednesay, off from a session high of USD94.47 and up from an earlier session low of USD93.41.
The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories fell by 6.3 million barrels in the week ended May 31, shooting way past expectations for a decline of 356,000 barrels.
Total U.S. crude oil inventories stood at 391.3 million barrels as of last week.
The report also showed that total motor gasoline inventories decreased by 366,000 barrels, compared to expectations for an increase of 522,000 barrels.
The numbers, a welcome surprise, sparked demand for the commodity as did a weaker dollar, the product of softer-than-expected data out of the labor market.
Payroll processor ADP reported earlier that non-farm private payrolls rose by 135,000 in May, well below expectations for an increase of 165,000, which weakened the dollar.
The previous month’s figure was revised down to a gain of 113,000 from a previously reported increase of 119,000.
Weak economic indicators often fuel expectations for the Federal Reserve to keep policy loose and the dollar weak, which makes oil an attractive buy.
On the ICE Futures Exchange, Brent oil futures for July delivery were up 0.48% at USD103.74 a barrel, up USD10.02 from its U.S. counterpart.
A weaker greenback tends to make oil a nicely priced asset in dollar-denominated exchanges, especially in the eyes of investors holding other currencies.
On the New York Mercantile Exchange, light sweet crude futures for delivery in July traded up 0.44% at USD93.72 a barrel on Wednesay, off from a session high of USD94.47 and up from an earlier session low of USD93.41.
The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories fell by 6.3 million barrels in the week ended May 31, shooting way past expectations for a decline of 356,000 barrels.
Total U.S. crude oil inventories stood at 391.3 million barrels as of last week.
The report also showed that total motor gasoline inventories decreased by 366,000 barrels, compared to expectations for an increase of 522,000 barrels.
The numbers, a welcome surprise, sparked demand for the commodity as did a weaker dollar, the product of softer-than-expected data out of the labor market.
Payroll processor ADP reported earlier that non-farm private payrolls rose by 135,000 in May, well below expectations for an increase of 165,000, which weakened the dollar.
The previous month’s figure was revised down to a gain of 113,000 from a previously reported increase of 119,000.
Weak economic indicators often fuel expectations for the Federal Reserve to keep policy loose and the dollar weak, which makes oil an attractive buy.
On the ICE Futures Exchange, Brent oil futures for July delivery were up 0.48% at USD103.74 a barrel, up USD10.02 from its U.S. counterpart.