Investing.com - A U.S.-European decision to slap fresh sanctions on Russia for allegedly meddling in Ukraine sent crude futures falling on Wednesday, offsetting otherwise bullish U.S. growth and inventory data.
In the New York Mercantile Exchange, West Texas Intermediate crude oil for delivery in September traded down 0.73% at $100.23 a barrel during U.S. trading. New York-traded oil futures hit a session low of $100.12 a barrel and a high of $101.64 a barrel.
The September contract settled down 0.69% at $100.97 a barrel on Tuesday.
Nymex oil futures were likely to find support at $99.60 a barrel, the low from July 16, and resistance at $102.10 a barrel, Monday's high.
The U.S. announced on Tuesday that Washington was slapping sanctions on Russian energy, defense and financial sectors on accusations that Moscow continues to support separatists in the Ukraine while amassing troops along its Ukrainian border.
The measures block of exports of certain goods and technologies bound for Russia's energy sector, toughen up sanctions on Russian financial and defense companies as well as suspend credit that encourages exports to Russia as well as finance development projects.
Europe announced similar measures, and concerns that sanctions will escalate the Ukraine standoff and drag on global growth offset bullish U.S. data.
The Commerce Department reported earlier that gross domestic product expanded at an annual rate of 4.0% in the three months to June, far surpassing forecasts for a 3.0% reading. The contraction in the first quarter was revised to 2.1% from a previously reported 2.9%.
Personal consumption grew 2.5%, well above predictions of 1.9%, the report said, adding to the view that the economic recovery is gaining traction.
Separately, the U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories declined by 3.7 million barrels in the week ended July 25, outpacing expectations for a decline of 1.5 million barrels.
Total U.S. crude oil inventories stood at 367.4 million barrels as of last week.
Total motor gasoline inventories increased by 0.4 million barrels, below forecasts for a gain of 1.3 million barrels, while distillate stockpiles rose by 0.8 million barrels, below expectations for an increase of 1.5 million barrels.
Separately, on the ICE Futures Exchange in London, Brent oil futures for September delivery were down 0.95% and trading at US$106.70 a barrel, while the spread between the Brent and U.S. crude contracts stood at US$6.47 a barrel.