We have updated our privacy policy and terms & conditions. Find out more here.
0
 

Crude oil holds near 2-week high after U.S. supply data

By Investing.comCommoditiesDec 19, 2012 03:40PM GMT Add a Comment
 
AA
+
-
Investing.com - Crude oil futures remained near a two-week high during U.S. morning hours on Wednesday, holding on to gains after a U.S. government report showed oil supplies fell less-than-expected last week.

Crude oil holds near 2-week high after U.S. supply data
Appetite for riskier assets improved amid indications U.S. political leaders were closing in on a budget deal to avert the looming fiscal cliff by the year-end deadline.

On the New York Mercantile Exchange, light sweet crude futures for delivery in February traded at USD88.95 a barrel during U.S. morning trade, up 0.6% on the day.

New York-traded oil prices rose by as much as 0.85% earlier in the day to trade at a session high of USD89.14 a barrel, the strongest level since December 5.

Prices traded at USD88.37 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 fell by 0.964 million barrels in the week ended December 14, compared to expectations for a decline of 1.122 million barrels.

Total U.S. crude oil inventories stood at 371.6 million barrels as of last week.

The report also showed that total motor gasoline inventories increased by 2.2 million barrels, above expectations for a gain of 1.8 million barrels.

Prices touched a two-week high earlier in the session as market sentiment was boosted by hopes that an agreement to avoid the U.S. fiscal cliff can be reached ahead of the January 1 deadline.

Negotiations aimed at avoiding the automatic tax hikes and spending cuts which investors fear could derail the U.S. recovery, have intensified in recent days, raising hopes that U.S. lawmakers will reach an agreement by the end of the year.

The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was down 0.2% to trade at 79.19, the lowest level since October 19.

Dollar-denominated oil futures contracts tend to rise when the dollar falls, as this makes oil cheaper for buyers in other currencies.

Meanwhile, in the U.S., official data showed that building permits increased 3.6% in November, to a seasonally adjusted annual rate of 899,000 units, the highest since July 2008. Analysts had forecast a gain of 0.8% to 0.875 million.

However, U.S. housing starts fell by 3% in November to a seasonally adjusted annual rate of 0.861 million, compared to expectations for a 2.5% decline to 0.873 million.

The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.

Elsewhere, on the ICE Futures Exchange, Brent oil futures for February delivery rose 0.7% to trade at USD109.59 a barrel, with the spread between the Brent and crude contracts standing at USD20.64 a barrel.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data .

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Related Articles

Gold gains on soft U.S. home sales data
By 
Investing.com
 - Oct 24, 2014
Natural gas dips as weather forecasts stay mild
By 
Investing.com
 - Oct 24, 2014
Crude drops as report of Saudi output cut refuted
By 
Investing.com
 - Oct 24, 2014

Add a Comment

 

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Total
 
 
 
Are you sure you want to delete this chart?
 
 
 
Are you sure you want to delete this chart?
 
 
 

Successfully Reported

Thank you. This comment has been flagged for a moderator.
_touchLoadingMsg