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Crude oil futures drop in Asian trade

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Forexpros - Crude oil futures dropped to five-week lows in Asian trade Wednesday, as a U.S. government report showed inventories of crude and gasoline rose last week.

On the New York Mercantile Exchange light, sweet crude futures for September delivery traded at USD92.38 a barrel during early Asian trade, falling 0.43%, after hitting a daily high of USD92.56.

In its Wednesday weekly report, U.S. Energy Information Administration said that U.S. crude oil inventories rose by 1.0 million barrels in the week ending July 29. That total was below forecasts of a 1.5 million barrel increase.

U.S. crude supplies rose for the second week, following a 2.3 million barrel increase the preceding week.

Total motor gasoline inventories rose by 1.7 million barrels, far exceeding expectations of a 0.5 million barrel increase, according to the EIA.

Demand concerns from the world's largest energy consumer were further heightened by a U.S. Census Bureau release Wednesday, showing U.S. factory orders fell more than expected in June by 0.8%, down from a revised 0.6% rise the previous month. Forecasts were for a 0.5% decline.

On the ICE Futures Exchange Brent oil futures for September delivery gained 0.15% to trade at USD113.44.

Markets were expected to monitor a report due out Thursday from the U.S. Department of Labor on initial jobless claims and implications for changes in crude oil demand.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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