Investing.com – Crude oil futures held on to losses on Thursday, after government data showed U.S. crude supplies rose unexpectedly last week, however ongoing concerns over a disruption to Iranian oil supplies continued to lend support.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in February traded at USD102.18 a barrel during U.S. morning trade, dropping 1.03%.
It earlier fell by as much as 1.4% to trade at a session low USD102.06 a barrel.
Crude prices traded at USD102.64 prior to the release of the Energy Information Administration data.
The U.S. EIA said in its weekly report that U.S. crude oil inventories rose by 2.2 million barrels in the week ended December 30, confounding expectations for a 1.2 million barrel decline.
Total U.S. crude oil inventories stood at 327.5 million barrels as of last week, remaining in the upper limit of the average range for this time of year.
Total motor gasoline inventories decreased by 2.5 million barrels, beating expectations for a 1.0 million barrel increase, after declining by 0.7 million barrels in the preceding week.
Crude prices came under additional pressure as concerns over the euro zone’s debt crisis lingered after France sold EUR4.02 billion of 10-year bonds at an average yield of 3.29%, compared with 3.18% at a similar auction last month. Bids exceeded the amount sold 1.6 times, down sharply from a bid-to-cover ratio of 3.1 in December.
France is viewed as being at high risk of losing its triple-A sovereign credit rating in the coming weeks, fuelling concerns that the region’s ongoing debt crisis will worsen.
Euro zone developments have dominated trading in the oil market for the last several months, amid worries that the sovereign debt crisis could trigger a broader economic slowdown that would curb demand for oil.
The U.S. dollar strengthened to the highest level since September 2010 against the euro, while the dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 1.05% to trade at 81.22, hovering below a 12-month high.
But losses were limited amid lingering concerns over a supply disruption concerns as a result of escalating tensions between Iran and the West.
A European Union diplomat said Wednesday that EU countries had agreed on principle to launch an oil embargo on Iran, but discussion were to continue over details such as timing and implementation.
Iran is the world's fourth largest oil producer, pumping nearly 5% of the world's oil in 2010. The threat of a major supply disruption from the country has helped support oil prices in recent weeks.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for February delivery fell 0.75% to trade at USD112.86 a barrel, with the spread between the Brent and crude contracts standing at USD10.68 a barrel.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in February traded at USD102.18 a barrel during U.S. morning trade, dropping 1.03%.
It earlier fell by as much as 1.4% to trade at a session low USD102.06 a barrel.
Crude prices traded at USD102.64 prior to the release of the Energy Information Administration data.
The U.S. EIA said in its weekly report that U.S. crude oil inventories rose by 2.2 million barrels in the week ended December 30, confounding expectations for a 1.2 million barrel decline.
Total U.S. crude oil inventories stood at 327.5 million barrels as of last week, remaining in the upper limit of the average range for this time of year.
Total motor gasoline inventories decreased by 2.5 million barrels, beating expectations for a 1.0 million barrel increase, after declining by 0.7 million barrels in the preceding week.
Crude prices came under additional pressure as concerns over the euro zone’s debt crisis lingered after France sold EUR4.02 billion of 10-year bonds at an average yield of 3.29%, compared with 3.18% at a similar auction last month. Bids exceeded the amount sold 1.6 times, down sharply from a bid-to-cover ratio of 3.1 in December.
France is viewed as being at high risk of losing its triple-A sovereign credit rating in the coming weeks, fuelling concerns that the region’s ongoing debt crisis will worsen.
Euro zone developments have dominated trading in the oil market for the last several months, amid worries that the sovereign debt crisis could trigger a broader economic slowdown that would curb demand for oil.
The U.S. dollar strengthened to the highest level since September 2010 against the euro, while the dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 1.05% to trade at 81.22, hovering below a 12-month high.
But losses were limited amid lingering concerns over a supply disruption concerns as a result of escalating tensions between Iran and the West.
A European Union diplomat said Wednesday that EU countries had agreed on principle to launch an oil embargo on Iran, but discussion were to continue over details such as timing and implementation.
Iran is the world's fourth largest oil producer, pumping nearly 5% of the world's oil in 2010. The threat of a major supply disruption from the country has helped support oil prices in recent weeks.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for February delivery fell 0.75% to trade at USD112.86 a barrel, with the spread between the Brent and crude contracts standing at USD10.68 a barrel.