The price of crude oil was ticking lower Wednesday morning as traders await cues from the official inventories data from the EIA, due out later during the session. Meanwhile, speculation about a move towards common euro-zone bonds in the upcoming European Union summit subsided after German Chancellor Angela Merkel ruled out such move.
Light Sweet Crude Oil (WTI) futures for August delivery, edged down $0.21 to $79.15 a barrel. Yesterday, oil ended marginally higher as the dollar turned lower against a basket of major currencies following some weak economic data from the U.S. However, gains were capped as investors continued to worry on the upcoming European Union summit meeting later this week, with little hopes of any resolution to the euro zone financial problems.
Tuesday after the market hours, the API said U.S. crude oil inventories rose 500,000 barrels and gasoline inventories moved up by 400,000 barrels in the weekended June 22.
Meanwhile, the U.S. dollar was was steady around its two-week high versus the euro and ticking higher against sterling. The buck was steady around its one-month high against the yen, while trading flat versus the Swiss franc.
In economic news from the euro zone, import price inflation in Germany eased to 2.2 percent in May from 2.3 percent in April, the Federal Statistical Office said. The import price index, excluding crude oil and mineral oil products, was 1.4 percent above the level of a year earlier.
Traders will look to data on durable goods order from the U.S. Commerce Department, due out at 8.30 a.m ET. Economists expect a 0.4 percent increase in durable goods orders for May. Excluding transportation, orders may have risen 0.8 percent.
Later during the session, the National Association of Realtors will come out with its data on Pending Home Sales. The index is expected to have risen 1.2 percent in May after declining 5.5 percent in April.
Today during trading hours, the EIA will release its U.S. crude oil inventories report fro the weekended June 22. Analysts expect cr4ude oil inventories to dip by 1 million barrels, while gasoline stocks are seen adding 300,000 barrels last week.
by RTT Staff Writer
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