Investing.com - Crude oil futures extended steep losses on Wednesday, after data showed that U.S. oil supplies rose significantly more-than-expected last week.
On the New York Mercantile Exchange, light sweet crude futures for delivery in November traded at USD101.73 a barrel during U.S. morning trade, down 1.7%.
Nymex oil prices traded at USD102.02 a barrel prior to the release of the supply data.
New York-traded oil futures fell to a session low of USD101.41 a barrel earlier in the day, the weakest level since October 1. The November contract settled 0.45% higher at USD103.49 a barrel on Tuesday.
Oil futures were likely to find support at USD101.07 a barrel, the low from October 1 and resistance at USD104.06 a barrel, the high from October 8.
The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories rose by 6.8 million barrels in the week ended October 4, compared to expectations for an increase of 1.5 million barrels.
Total U.S. crude oil inventories stood at 370.5 million barrels as of last week.
The report also showed that total motor gasoline inventories increased by 0.1 million barrels, below expectations for a gain of 1.3 million barrels.
Meanwhile, investors continued to monitor negotiations over a U.S. budget impasse that has kept the federal government shut down since October 1.
Markets were also growing increasingly concerned over how the political deadlock in Washington will impact on negotiations to raise the U.S. debt ceiling, which the U.S. Treasury Department has estimated will be reached by October 17.
President Barack Obama repeated Tuesday that he is willing to negotiate with congressional Republicans on spending cuts, but only after the government is reopened and the debt limit is raised.
Oil traders now looked ahead to the minutes of the Federal Reserve’s September policy-setting meeting for further clues on the direction of U.S. monetary policy.
The Fed took markets by surprise last month with a decision to keep its stimulus program on track, saying it wanted to see more evidence of a sustained economic recovery before tapering.
The shutdown has halted the release of economic reports, including payrolls data for September, fuelling speculation the Fed will hold off on any move to scale back its stimulus program.
The White House said President Barack Obama will announce his nomination of Federal Reserve Vice Chairwoman Janet Yellen to head the U.S. central bank later Wednesday.
Yellen is perceived as being more likely to maintain the Fed’s current accommodative monetary policy stance.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for November delivery dropped 1.35% to trade at USD108.67 a barrel, with the spread between the Brent and crude contracts standing at USD6.94 a barrel.
On the New York Mercantile Exchange, light sweet crude futures for delivery in November traded at USD101.73 a barrel during U.S. morning trade, down 1.7%.
Nymex oil prices traded at USD102.02 a barrel prior to the release of the supply data.
New York-traded oil futures fell to a session low of USD101.41 a barrel earlier in the day, the weakest level since October 1. The November contract settled 0.45% higher at USD103.49 a barrel on Tuesday.
Oil futures were likely to find support at USD101.07 a barrel, the low from October 1 and resistance at USD104.06 a barrel, the high from October 8.
The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories rose by 6.8 million barrels in the week ended October 4, compared to expectations for an increase of 1.5 million barrels.
Total U.S. crude oil inventories stood at 370.5 million barrels as of last week.
The report also showed that total motor gasoline inventories increased by 0.1 million barrels, below expectations for a gain of 1.3 million barrels.
Meanwhile, investors continued to monitor negotiations over a U.S. budget impasse that has kept the federal government shut down since October 1.
Markets were also growing increasingly concerned over how the political deadlock in Washington will impact on negotiations to raise the U.S. debt ceiling, which the U.S. Treasury Department has estimated will be reached by October 17.
President Barack Obama repeated Tuesday that he is willing to negotiate with congressional Republicans on spending cuts, but only after the government is reopened and the debt limit is raised.
Oil traders now looked ahead to the minutes of the Federal Reserve’s September policy-setting meeting for further clues on the direction of U.S. monetary policy.
The Fed took markets by surprise last month with a decision to keep its stimulus program on track, saying it wanted to see more evidence of a sustained economic recovery before tapering.
The shutdown has halted the release of economic reports, including payrolls data for September, fuelling speculation the Fed will hold off on any move to scale back its stimulus program.
The White House said President Barack Obama will announce his nomination of Federal Reserve Vice Chairwoman Janet Yellen to head the U.S. central bank later Wednesday.
Yellen is perceived as being more likely to maintain the Fed’s current accommodative monetary policy stance.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for November delivery dropped 1.35% to trade at USD108.67 a barrel, with the spread between the Brent and crude contracts standing at USD6.94 a barrel.