Crude Slips Below $95 Ahead Of ECB

Crude oil slipped below the $95.00 a barrel level after rising the most in five weeks yesterday as US demand for gasoline increased by the fastest rate since July. However, the rising caution ahead of central banks rate decisions and key US data weighed.

Investors are waiting for the outcome of the European Central Bank's (ECB) policy meeting and Bank of England’s (BoE) rate decision, while from the US the third-quarter GDP numbers are due later in the day which will help gauge the outlook for oil demand.

“Overall, we will see oil and other markets trade in a tight range today as everybody is waiting for ECB`s interest rate decision and US GDP numbers”, said Ben Le Brun from OptionsXpress in Sydney.

- WTI crude oil futures for December is trading around $94.74 a barrel after falling $0.06

- Brent futures for December settlement is trading around $104.85 a barrel after falling $0.39

Crude however drew strength from a steeper-than-expected drop in gasoline stocks last week in the world`s top oil consumer. Gasoline stockpiles shrank for a fourth week by 3.76 million barrels to 210 million according to the US Energy Information Administration.

Crude inventories, however, expanded for a seventh week, the longest stretch of gains since March, by 1.58 million barrels to 385.4 million, the highest since June 21. While distillates including diesel and heating oil, fell by 4.9 million barrels to 117.8 million.

“The US benchmark is drawing support from the steep fall in oil product stockpiles we saw in the data overnight, suggesting a pick-up in demand”, Le Brun added.

- Natural gas is trading at $3.50 per cubic feet after rising 0.06%

- Gasoline is trading at $2.5444 per cubic feet after falling 0.14%

- Heating oil (diesel) is trading at $2.8656 a gallon after falling 0.14%