Investing.com - Oil prices dropped on Wednesday after official data revealed U.S. supplies rose more than expected last week, stoking fears the country is awash in crude while soft on demand.
A fresh batch of disappointing economic indicators fueled losses as well by painting a picture of a U.S. economy still battling potholes on its road to recovery and in need of less fuel and energy than once anticipated.
On the New York Mercantile Exchange, light sweet crude futures for delivery in December traded at USD97.06 a barrel during U.S. trading, down 1.16%.
The commodity hit a session low of USD96.90 and a high of USD98.20. The December contract settled down 0.49% at USD98.20 a barrel on Tuesday.
Oil futures were likely to find support at USD95.96 a barrel, the low from Oct. 24 and resistance at USD98.80 a barrel, the high from Oct. 28.
The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories rose by 4.1 million barrels in the week ended Oct. 25, well above expectations for an increase of 2.3 million barrels.
Total U.S. crude oil inventories stood at 383.9 million barrels, the highest level since June.
The report also showed that total motor gasoline inventories declined by 1.7 million barrels, compared to expectations for a drop of 140,000 barrels.
U.S. crude prices have slid in recent weeks amid concerns the recent U.S. government shutdown dampened an already lackluster economic recovery and eroded demand in the world’s largest oil consumer.
Soft economic indicators released Wednesday pushed prices lower as well.
Payroll processing firm ADP said U.S. non-farm private employment rose by a seasonally adjusted 130,000 in October, below expectations for an increase of 150,000.
The previous month’s figure was revised down to a gain of 145,000 from a previously reported increase of 166,000.
A separate report showed that U.S. consumer prices rose 0.2% in September, in line with forecasts, after rising by 0.1% in August.
Meanwhile on the ICE Futures Exchange, Brent oil futures for December delivery were up 0.35% at USD109.40 a barrel, up USD12.34 from its U.S. counterpart.
A fresh batch of disappointing economic indicators fueled losses as well by painting a picture of a U.S. economy still battling potholes on its road to recovery and in need of less fuel and energy than once anticipated.
On the New York Mercantile Exchange, light sweet crude futures for delivery in December traded at USD97.06 a barrel during U.S. trading, down 1.16%.
The commodity hit a session low of USD96.90 and a high of USD98.20. The December contract settled down 0.49% at USD98.20 a barrel on Tuesday.
Oil futures were likely to find support at USD95.96 a barrel, the low from Oct. 24 and resistance at USD98.80 a barrel, the high from Oct. 28.
The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories rose by 4.1 million barrels in the week ended Oct. 25, well above expectations for an increase of 2.3 million barrels.
Total U.S. crude oil inventories stood at 383.9 million barrels, the highest level since June.
The report also showed that total motor gasoline inventories declined by 1.7 million barrels, compared to expectations for a drop of 140,000 barrels.
U.S. crude prices have slid in recent weeks amid concerns the recent U.S. government shutdown dampened an already lackluster economic recovery and eroded demand in the world’s largest oil consumer.
Soft economic indicators released Wednesday pushed prices lower as well.
Payroll processing firm ADP said U.S. non-farm private employment rose by a seasonally adjusted 130,000 in October, below expectations for an increase of 150,000.
The previous month’s figure was revised down to a gain of 145,000 from a previously reported increase of 166,000.
A separate report showed that U.S. consumer prices rose 0.2% in September, in line with forecasts, after rising by 0.1% in August.
Meanwhile on the ICE Futures Exchange, Brent oil futures for December delivery were up 0.35% at USD109.40 a barrel, up USD12.34 from its U.S. counterpart.