U.S. crude oil snapped a two-day loss to end higher Wednesday, with the dollar continuing to weaken against a basket of major currencies and notwithstanding an official Energy Information Administration weekly oil report that showed a sharp, more than expected jump in U.S. crude oil stockpiles last week.
Latest data from the Energy Information Administration revealed that US crude oil inventories moved up 2.5 million barrels to 393.80 million barrels and gasoline stocks were up 2.70 million barrels in the week ended June 7. Analysts expected no change to crude oil inventories, while gasoline stocks were expected to rise by 1 million. This compares with the week before, when crude oil inventories plummeted 6.30 million barrels to 391.30 million barrels.
Earlier today, the IEA projected oil demand for 2013 at 90.6 mbd for 2013, projecting higher through-puts in the third quarter. The world's second largest consumer of oil, China, is expected to consume an additional 365,000 barrels a day of crude in 2013, which is an increase of 3.8 percent but less than the projection made a month ago.
Light Sweet Crude Oil futures for July delivery, the most actively traded contract, gained $0.50 or 0.5 percent to close at $95.88 a barrel on the New York Mercantile Exchange Wednesday.
Crude prices for July delivery scaled a high of $96.45 a barrel intraday and a low of $94.46.
Yesterday, oil settled lower for a second straight session amid speculation the U.S. Federal Reserve might scale back its aggressive monetary policies, after the Bank of Japan opted not to expand its stimulus program. Prices were also impacted with the Organization of the Petroleum Exporting Countries maintaining its global oil demand for the year intact.
Earlier on Tuesday, the American Petroleum Institute indicated crude oil inventories to have jumped 9 million barrels in the weekended June 7.
The dollar index, which tracks the U.S. unit against six major currencies, traded at 80.96 on Wednesday, down from 81.05 late Tuesday in North American trade. The dollar scaled a high of 81.31 intraday and a low of 80.75.
The euro traded higher against the dollar at $1.3329 on Wednesday, as compared to $1.3313 late Tuesday in North America. The euro scaled a high of $1.3360 intraday and a low of $1.3268.
In economic news, eurozone industrial production grew 0.4 percent in April from a month ago, largely due to higher output of capital goods and non-durable consumer goods, data from Eurostat revealed. Industrial output was forecast to remain flat after rising 0.9 percent in March.
Germany's EU harmonized inflation accelerated in May, but to a lesser extent than initially estimated, final data released by the Federal Statistical Office showed. Inflation as per the harmonized index of consumer prices (HICP) rose to 1.6 percent in May from 1.1 percent in April. The flash estimates were for an inflation rate of 1.7 percent.
The number of people claiming unemployment benefits in the U.K. decreased by 8,600 in May from April, the Office for National Statistics reported. The decline was sharper than the expected drop of 5,000.
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