WASHINGTON (Alliance News) - Crude oil prices are notably higher Wednesday morning, amid expectations of increased demand on the back of an upbeat Chinese GDP data.
Investors, looking ahead to the official crude oil inventory data from the US Energy Information Administration, due at 10:30 am ET, are also continuing to watch the developments in the Middle East.
According to reports, Iraqi forces retreated from central Tikrit after fierce fighting with suspected ISIS militants that resulted in the death of more than 50 soldiers.
According to a report from the American Petroleum Institute, released Tuesday evening, US crude inventories declined by a larger than expected 4.8 million barrels in the week ended July 11.
The Federal Reserve Chair Janet Yellen will testify concerning the semi-annual monetary policy for the second day, this time before the House Financial Services Committee. On Tuesday, Yellen had indicated that a rate hike could happen sooner than anticipated if the jobs market continues to show improvement.
Crude oil futures for August are up USD0.98 or 0.99% at USD100.95 a barrel.
On Tuesday, crude oil had ended at USD99.96 a barrel, losing USD0.95 or 0.9%, amid expectations of a global supply glut.
Meanwhile, natural gas is up USD0.022 or 0.55% at USD4.120 per million btu.
According to a report from China'sNational Bureau of Statistics, gross domestic product expanded 7.5% on year in the second quarter of 2014, beating forecasts for a 7.4% increase. On a seasonally adjusted quarterly basis, GDP gained an annualized 2.0% - also beating expectations for 1.8% and accelerating from 1.4% in the first quarter.
The US Labor Department will release a report on producer prices for final goods at 8:30 am ET. Economists expect the headline index to show 0.2% month-over-month increase in June, while excluding food and energy, the producer price inflation for final goods is expected at 0.2%.
At 9:15 am ET, the Federal Reserve is due to release its industrial production report for June. The consensus estimate calls for a 0.4% month-over-month increase in industrial output. The results of homebuilder confidence survey will be out at 10 am ET.