The prices of oil drifted lower on Thursday for a fourth straight session, after an official weekly oil report from the Energy Information Administration (EIA) showed U.S. crude stockpiles have declined more than expected last week.
- Crude Oil edged 1.00% lower to trade at $99.27 a barrel
- Brent Oil was at $105.67 a barrel, 0.79% lower
Reports of additional tougher sanctions on Russia by the U.S. and European Union for its support to separatists in Ukraine offset gains after some strong U.S. economic growth data. The strength of the U.S. dollar in the past week has also weighed on dollar-denominated oil.
A Commerce Department report on Wednesday showed U.S. Gross Domestic Product (GDP) for the second quarter rebounded more than expected. The economy grew 4.0 percent following a revised 2.1 percent decrease in the first quarter, with economists anticipated a 3.0 percent rise.
Meanwhile, a report from payroll processor ADP showed that employment in the private sector registered a notable growth in July, albeit below expectations, increasing by 218,000 jobs, after jumping 281,000 jobs in June. However, it fell short of estimates for an increase of 230,000 jobs.
The U.S. dollar extended gains for a third straight sessions on Thursday, with the index last seen trading at 81.53 after opening at 81.48, while setting a session high at 81.54 and low at 81.46.
As expected, the Federal Reserve will reduce its asset purchases by another $10 billion, cutting its monthly asset buying program to $25 billion, in line to wind down its bond buying plan with a $15 billion purchase in October.
The U.S. Federal Reserve said it would make further cuts to its monetary stimulus as expected. At the current pace of cutbacks, the Fed`s bond purchases will end in October.
In other NYMEX trading:
- NYMEX Gasoline lost 0.47% to trade at $283.00
- NYMEX Heating Oil dropped 0.24% to trade at $288.36