Investing.com - Crude oil futures trimmed losses during U.S. morning hours on Wednesday, coming off the lowest level of the session after a U.S. government report showed oil supplies rose broadly in line with market expectations last week.
On the New York Mercantile Exchange, light sweet crude futures for delivery in March traded at USD95.86 a barrel during U.S. morning trade, down 0.8% on the day.
New York-traded oil prices fell by as much as 1.6% earlier in the session to hit a daily low of USD95.06 a barrel, the weakest level since January 23.
Prices traded at USD95.64 a barrel prior to the release of the supply data.
The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories rose by 2.6 million barrels in the week ended February 1, compared to expectations for an increase of 2.7 million barrels.
Total U.S. crude oil inventories stood at 371.7 million barrels as of last week.
The report also showed that total motor gasoline inventories increased by 1.7 million barrels, compared to expectations for a decline of 0.1 million barrels.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
Oil prices were lower ahead of the data as the U.S. dollar rose against its major counterparts, amid caution ahead of the outcome of Thursday’s European Central Bank policy meeting.
Meanwhile, in Italy, uncertainty over the outcome of upcoming general elections mounted as former Prime Minister Silvio Berlusconi gained further ground in opinion polls.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.3% to trade at 79.82, the highest level since January 29.
Dollar-denominated oil futures contracts tend to fall when the dollar rises, as this makes oil more expensive for buyers in other currencies.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for March delivery declined 0.4% to trade at USD116.06 a barrel, with the spread between the Brent and crude contracts standing at USD20.20 a barrel, the widest since late-December.
The spread between the two contracts has grown amid renewed concerns over the glut of oil supply in storage at Cushing, Oklahoma, the trading hub for NYMEX oil.
Operators of the Seaway Pipeline said on January 31 that restrictions will limit flows on the key pipeline until late 2013. The pipeline began carrying crude to the Gulf Coast area from Cushing, last month after the flow direction was reversed.
On the New York Mercantile Exchange, light sweet crude futures for delivery in March traded at USD95.86 a barrel during U.S. morning trade, down 0.8% on the day.
New York-traded oil prices fell by as much as 1.6% earlier in the session to hit a daily low of USD95.06 a barrel, the weakest level since January 23.
Prices traded at USD95.64 a barrel prior to the release of the supply data.
The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories rose by 2.6 million barrels in the week ended February 1, compared to expectations for an increase of 2.7 million barrels.
Total U.S. crude oil inventories stood at 371.7 million barrels as of last week.
The report also showed that total motor gasoline inventories increased by 1.7 million barrels, compared to expectations for a decline of 0.1 million barrels.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
Oil prices were lower ahead of the data as the U.S. dollar rose against its major counterparts, amid caution ahead of the outcome of Thursday’s European Central Bank policy meeting.
Meanwhile, in Italy, uncertainty over the outcome of upcoming general elections mounted as former Prime Minister Silvio Berlusconi gained further ground in opinion polls.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.3% to trade at 79.82, the highest level since January 29.
Dollar-denominated oil futures contracts tend to fall when the dollar rises, as this makes oil more expensive for buyers in other currencies.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for March delivery declined 0.4% to trade at USD116.06 a barrel, with the spread between the Brent and crude contracts standing at USD20.20 a barrel, the widest since late-December.
The spread between the two contracts has grown amid renewed concerns over the glut of oil supply in storage at Cushing, Oklahoma, the trading hub for NYMEX oil.
Operators of the Seaway Pipeline said on January 31 that restrictions will limit flows on the key pipeline until late 2013. The pipeline began carrying crude to the Gulf Coast area from Cushing, last month after the flow direction was reversed.