The price of crude oil was moving higher Wednesday morning as traders await cues from the weekly crude oil inventories report from the Energy Information Administration.
Light Sweet Crude Oil (WTI) futures for June delivery, moved up $0.62 to $104.17 a barrel. Yesterday, oil ended marginally higher on global cues as concerns over the euro zone sovereign debt crisis ebbed while the dollar weakened against the euro and other major currencies.
Tuesday after the market hours, the API said US crude oil inventories fell by 985,000 barrels and gasoline stocks eased 3.60 million barrels in the weekended April 20.
This morning, the U.S. dollar slipped back near its three-week low versus the euro, while rebounding from a yearly low against sterling after UK economy unexpectedly shrank in the first quarter. The buck was ticking lower versus the yen and the Swiss franc.
In economic news from the euro zone, the U.K. economy unexpectedly contracted for the second straight time in the first quarter, the Office for National Statistics showed today. Gross domestic product dropped 0.2 percent sequentially, while economists were forecasting a 0.1 percent expansion. That follows a 0.3 percent drop in the fourth quarter of 2011.
Traders will look to the Commerce Department's release on durable goods orders report at 8:30 a.m. ET. Economists expect a 1.5 percent drop in durable goods orders for March. Excluding transportation, orders may have risen 0.4 percent.
Today during trading hours, the EIA will come out with its US crude oil inventories report for the weekended April 20. Analysts expect crude oil inventories to add 1.50 million barrels, while gasoline stocks are seen dipping by 500,000 barrels last week.
by RTT Staff Writer
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