News Column

Crude Oil Ends Below USD103 Ahead Of Supply Data

May 28, 2014

WASHINGTON (Alliance News) - US crude oil moved down sharply to end at a one-week low Wednesday, ahead of the official US crude oil inventory data with investors expecting the data to show an increase in stockpiles and the dollar trending higher. Investors were also focused on the developments in Ukraine where situation remains tense after clashes between pro-Russian separatists and Ukrainian government forces.

Due to the holiday last Monday, the American Petroleum Institute's oil report will be out only later today, while the US Energy Information Administration's weekly report is scheduled for Thursday.

Light Sweet Crude Oil futures for July delivery, the most actively traded contract, dropped USD1.39 or 1.3% to close at USD102.72 a barrel on the New York Mercantile Exchange Wednesday.

Crude prices for July delivery scaled a high of USD104.39 a barrel intraday and a low of USD103.25.

Oil prices settled lower yesterday, but losses were limited on a slew of upbeat economic data out of the US

The dollar index, which tracks the US unit against six major currencies, traded at 80.57 on Wednesday, up from its previous close of 80.35 late Tuesday in North American trade. The dollar scaled a high of 80.58 intraday and a low of 80.32.

The euro traded lower against the dollar at USD1.3591 on Wednesday, as compared to its previous close of USD1.3635 late Tuesday in North American trade. The euro scaled a high of USD1.3640 intraday and a low of USD1.3590.

In economic news, German unemployment increased in May confounding expectations, for the first time in six months but the labor office credited it largely to weather related factors. The number of people out of work increased by around 24,000 to 2.91 million in May, the Federal Labor Agency reported Wednesday, the first increase in six months. The forecast was for a decline of 15,000.

Meanwhile, eurozone economic sentiment improved more-than-expected in May to a 34-month high, driven by higher confidence among consumers and industry managers, survey results showed Wednesday. The economic sentiment index rose to 102.7 in May, the highest since July 2011, from 102 in April, the European Commission said. This was also above the consensus of 102.2.

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Source: Alliance News

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