Crude oil futures were trading higher this morning due to weakness in the dollar. NYMEX crude oil futures edged lower today due to profit booking and firm dollar against the euro. The dollar later eased down as the euro climbed and crude oil recovered to trade at 95.95.
Crude oil prices recovered from early losses after the US Energy Information Administration said domestic oil inventories were flat last week and gasoline inventories surged to the highest level for this time of the year in 2-decades. Crude oil inventories in the US were unchanged at 394.1mn barrels, gasoline stockpiles rose by 3.7mn barrels to 225.4mn barrels and stocks of distillates, comprising heating oil and diesel, increased by 1.6mn barrels to 123.2mn barrels, according to the most recent EIA report. Crude oil edged lower on Wednesday after upbeat U.S. economic data suggested the Federal Reserve may pare its stimulus sooner than thought, cutting the flow of cheap central bank money that has boosted market liquidity.
Imports from Iran, which is subject to tough sanctions over its disputed nuclear weapons program, rose almost 109 percent from a year earlier, but was down 17 percent on a year to-date basis. Vietnam’s crude oil exports in the first six months of 2013 rose an estimated 3.4 percent from a year ago to 4.38 million tons, or 177,000 barrels per day (bpd), the government said this morning.
The euro pared some of the losses against the dollar, after final data showed US gross domestic product growth was more tepid than previously estimated in the first quarter, but was held back by a moderate pace of consumer spending, weak business investment and declining exports.
Natural gas futures edged higher on NYMEX, backed by a slightly warmer extended weather outlook and some technical buying ahead of the July contract expiration. Natural gas inventories are expected to increase between 85-90bn cubic feet, actual data will be released by EIA later in the day. Natural gas prices mostly lost ground on Wednesday for a fifth straight day, with milder weather expected next week for much of the eastern half of the nation pressuring prices. Natural gas is trading at 3.736. Power production in the continental United States for the week ended June 22 slid 5.3 percent from the same week in 2012 to 81,695 gigawatt hours, according to data released Wednesday by the Edison Electric Institute. U.S. natural gas inventories on average are expected to have gained 88 billion cubic feet last week, a Reuter’s poll of industry traders and analysts showed on yesterday.