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Oil up slightly after API data

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Investing.com - Oil futures traded slightly higher in the early part of Wednesday's Asian session following the release of a weekly inventories report out of the U.S. and ahead of PMI data out of China.

On the New York Mercantile Exchange, light, sweet crude futures for September delivery rose 0.13% to USD107.37 per barrel in Asian trading Wednesday after settling down 0.09% at USD106.84 a barrel on Tuesday in the U.S.

The American Petroleum Institute U.S. oil inventories fell by 1.4 million barrels, well below the 2.6 million barrel decline forecast by analysts. API said gasoline stockpiles fell by about 900,000 barrels while distillate supplies fell by 700,000 barrels.

Analysts expected gasoline supplies to rise by 800,000 barrels and looked for a climb of 1.9 million barrels in distillates, according to MarketWatch.

Recent oil inventory reports have shown that demand has been on the rise in the U.S. in the past few months, though concerns that such growth won't sustain itself reflected in Tuesday's modest selloff, especially in wake of the release of softer-than-expected housing data.

The National Association of Realtors reported earlier that existing home sales fell 1.2% to 5.08 million units in June, missing market calls for sales to rise 0.6% to 5.25 million units in June. Sales for May were revised down to 5.14 million from a previously reported 5.18 million.

Traders will now turn their attention to China's PMI reading, due out later in the Asian session. The number is HSBC's flash estimate of its China July. Last month, the HSBC PMI fell to a nine-month low of 48.2. Readings below 50 indicate contraction.

China is the world's second-largest oil consumer behind the U.S.

Elsewhere, Brent futures for September delivery rose 0.06% to USD108.53 per barrel on the ICE Futures Exchange.

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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.


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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