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Crude oil rebounds as markets await Fed, U.S. supply data

Published 11/02/2011, 05:35 AM
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Investing.com – Crude oil futures were up for the first time in three days on Wednesday, as speculation the Federal Reserve may offer hints of further easing measures to boost the U.S. economy overshadowed concerns over Greece’s debt woes. 

On the New York Mercantile Exchange, light, sweet crude futures for delivery in December traded at USD92.79 a barrel during European morning trade, climbing 0.65%.    

It earlier rose by as much as 1.1% to trade at USD93.20 a barrel, the highest price since October 31.

The Federal Reserve’s Open Market Committee was to conclude its two-day policy meeting later in the day, with Fed Chairman Ben Bernanke conducting the bank’s post-meeting press conference.

Commodity traders will pay close attention for any hints regarding the introduction of further stimulus measures to revive the U.S. economic recovery and bolster growth.

The U.S. dollar came under pressure, boosting the appeal of commodities. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.48% to trade at 77.05.

Meanwhile, markets were awaiting weekly government data on U.S. stockpiles of crude and refined products to gauge the strength of oil demand in the world’s largest oil consumer.

The report was expected to show that U.S. crude oil stockpiles rose by 1.2 million barrels last week, while gasoline supplies were forecast to fall by 0.9 million barrels.

After markets closed Tuesday, the American Petroleum Institute, an industry group, said that U.S. crude inventories fell by 0.15 million barrels last week, confounding expectations for a small gain. Total gasoline supplies fell by 1.1 million barrels.

But gains were limited amid concerns a Greek referendum on the recent bailout deal will roil the region’s efforts to solve the debt crisis.

German Chancellor Angela Merkel, French President Nicolas Sarkozy and Greek Prime Minister George Papandreou were due to meet in Cannes later in the day, ahead of the Group of 20 summit scheduled to begin Thursday.

Elsewhere, on the ICE Futures Exchange, Brent oil futures for December delivery rose 0.73% to trade at USD110.33 a barrel, with the spread between the Brent and crude contracts widening to USD17.54 a barrel.

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