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WTI oil futures hit session lows after bearish U.S. supply report

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Investing.com -

Investing.com - West Texas Intermediate oil futures extended losses to hit the lowest levels of the session on Wednesday, after data showed that oil supplies in the U.S. rose unexpectedly last week.

On the New York Mercantile Exchange, crude oil for delivery in September shed 0.38%, or 37 cents, to trade at $97.00 a barrel during U.S. morning hours. Prices were at $97.25 a barrel prior to the release of the supply data.

New York-traded oil futures were likely to find support at $96.55 a barrel, the low from August 7 and resistance at $98.58 a barrel, the high from August 11.

The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories increased by 1.4 million barrels in the week ended August 8, compared to expectations for a decline of 2.0 million barrels.

Total U.S. crude oil inventories stood at 367.0 million barrels as of last week.

The report also showed that total motor gasoline inventories decreased by 1.2 million barrels, compared to forecasts for a decline of 1.1 million barrels, while distillate stockpiles fell by 2.4 million barrels.

Also Wednesday, the U.S. Commerce Department said that retail sales were little changed last month, disappointing expectations for a 0.2% increase.

Core retail sales, which exclude automobile sales, eased up by a seasonally adjusted 0.1% in July, below forecasts for a 0.4% increase.

Core sales correspond most closely with the consumer spending component of the government's gross domestic product report. Consumer spending accounts for as much as 70% of U.S. economic growth.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for October delivery tacked on 0.06%, or 6 cents, to trade at $103.95 a barrel.

Brent oil futures tumbled to a 13-month low on Wednesday, as global supplies were seen as ample despite ongoing violence in Ukraine and the Middle East.

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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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