The price of crude oil was ticking lower Wednesday morning after witnessing smart gains in the previous session on supply concerns.
Light Sweet Crude Oil (WTI) futures for November delivery, slipped $0.26 to $92.10 a barrel. Yesterday, oil rebounded from a 2-month low mostly on bargain hunting and renewed supply concerns after news that the ongoing unrest in Syria could spread to adjoining areas, with Turkey keyed up after mortar strikes on its territory. There were also news reports of Nato plans to protect Turkey's border with Syria following increased tensions between the two countries.
The Organization of the Petroleum Exporting Countries (OPEC) maintained its world oil demand growth projections at 0.8 mbd for 2013, in line with the growth for the current year.
This morning, the U.S. dollar continued to recover from a two-week low versus the euro and advancing to a monthly high against sterling. The buck was trading flat versus the Swiss franc and the yen.
In economic news from the euro zone, Germany's wholesale price inflation increased in September at the fastest pace since November 2011, data from Destatis revealed. Wholesale prices rose at a more than expected pace of 4.2 percent year-on-year in September after climbing 3.1 percent in August. The annual rate was forecast to reach 3.3 percent.
Meanwhile, France's industrial production growth accelerated in August, increasing hopes that the second largest euro zone economy could escape a recession in the third quarter. Data released by statistical office Insee showed that industrial production rose by 1.5 percent month-over-month in August, faster than the 0.6 percent gain seen in July. Economists were looking for a 0.3 percent decline.
Traders will look to the the wholesale inventories report from the Commerce Department, due out at 10 a.m. ET. Economists expect wholesale inventories at the end of August to show a 0.4 percent increase compared to a 0.7 percent increase in July
Today after the market hours, the API will release its crude oil inventories report from the weekended October 05.
by RTT Staff Writer
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