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Oil trades higher on supply concerns

Published 11/06/2013, 10:38 PM
Updated 11/06/2013, 10:38 PM

Investing.com - Oil futures traded higher during Thursday’s Asian session, building on gains from Wednesday’s session that were driven by supply concerns.

On the New York Mercantile Exchange, light, sweet crude futures for December delivery rose 0.19% to USD94.98 per barrel in Asian trading Thursday. The December contract settled higher by 1.53% at USD94.80 per barrel on Wednesday, crude’s best showing in a month.

Crude got a boost Wednesday after the U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories rose by 1.58 million barrels in the week ended Nov. 1, compared to expectations for an increase of 1.63 million barrels. Total U.S. crude oil inventories stood at 385.4 million barrels.

The report also showed that total motor gasoline inventories declined by 3.8 million barrels, compared to expectations for a drop of 338,000 barrels.

The EIA news caught some traders off-guard because recent inventories data has pointed to a slowdown in U.S., indicating tepid strength in the U.S. economic recovery.

Meanwhile, investors began to prep for the release of widely-watched economic indicators later this week to gauge the health of the U.S. economy and its needs for fuel and energy.

Later Thursday, the U.S. Commerce Department delivers the first reading of third-quarter GDP, which is expected to be 2% after second-quarter growth of 2%.

Another pivotal data point for oil traders looms Friday with the release of the U.S. non-farm payroll report for October. The U.S. is the world’s largest oil consumer.

Elsewhere, Brent futures for December delivery rose 0.18% to USD105.11 per barrel on the ICE Futures Exchange.


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