Investing.com - U.S. oil futures remained higher, albeit off the
best levels of the session on Wednesday, after a U.S. government
report showed that oil supplies rose unexpectedly last week.
On the New York Mercantile Exchange, crude oil for delivery in
June advanced 0.56%, or 57 cents, to trade at $102.27 a barrel
during U.S. morning hours. Prices were at $102.35 a barrel prior to
the release of the supply data.
Nymex oil hit a session high of $102.39 a barrel earlier in the
day, the most since April 29. U.S. oil futures added 1.1%, or
$1.11, on Tuesday to settle at $101.70 a barrel.
New York-traded oil futures were likely to find support at
$100.36 a barrel, the low from May 13 and resistance at $103.57 a
barrel, the high from April 22.
The U.S. Energy Information Administration said in its weekly
report that U.S. crude oil inventories increased by 947,000 barrels
in the week ended May 9, compared to expectations for a decline of
Total U.S. crude oil inventories stood at 398.5 million barrels
as of last week.
The report also showed that total motor gasoline inventories
decreased by 772,000 barrels, compared to forecasts for a gain of
143,000 barrels, while distillate stockpiles decreased by 1.1
million barrels, compared to expectations for a gain of 0.6 million
Meanwhile, the Commerce Department said that producer prices in
the U.S. increased by a seasonally adjusted 0.6% last month, above
forecasts for a 0.2% gain, after rising 0.5% in March.
Year-over-year, the producer price index rose at an annualized
rate of 2.1% in April, above expectations for a 1.7% increase and
up from 1.4% in the preceding month.
The core producer price index advanced 0.5% last month, compared
to expectations for a 0.2% increase, after rising 0.6% in
Core produces prices rose at an annualized rate of 1.9% in
April, beating forecasts for a 1.4% gain and after climbing 1.4% in
the preceding month.
Core prices are viewed by the Federal Reserve as a better gauge
of longer-term inflationary pressure because they exclude the
volatile food and energy categories.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for
July delivery inched up 0.43%, or 47 cents, to trade at $109.01 a
barrel, while the spread between the Brent and U.S. crude contracts
stood at $6.74 a barrel.
Oil traders continued to monitor events in Ukraine, as conflict
between pro-Russian separatists and Ukrainian forces continued to
escalate, stoking fears that the crisis will develop and drag the
U.S. deeper into the standoff.
Russia produced 10.4 million barrels of oil per day in 2012 and
exported 7.4 million, making it the world's second largest oil
exporter after Saudi Arabia.
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