Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

U.S. oil futures edge higher after consumer confidence data

Published 10/28/2014, 10:46 AM
Updated 10/28/2014, 10:46 AM
WTI oil edges higher after U.S. consumer confidence data

Investing.com - U.S. oil futures edged higher on Tuesday, after data showed that U.S. consumer confidence improved to the highest level in seven years in October.

On the New York Mercantile Exchange, crude oil for delivery in December tacked on 13 cents, or 0.16%, to trade at $81.13 a barrel during U.S. morning hours.

Prices held in a narrow range between $80.37 and $81.65 a barrel.

Futures were likely to find support at $79.44 a barrel, Monday's low, and resistance at $81.95 a barrel, the high from October 24.

The Conference Board said its index of consumer confidence rose to 94.5 this month from a reading of 89.0 in September. Analysts expected the index to fall to 87.0 in October.

The upbeat report came after the U.S. Commerce Department said that total durable goods orders, which include transportation items, decreased by a seasonally adjusted 1.3% last month, disappointing expectations for a gain of 0.5%.

Core durable goods orders, excluding volatile transportation items, eased down by a seasonally adjusted 0.2% in September, compared to forecasts for a 0.5% gain.

Market players awaited the start of a highly anticipated Federal Reserve meeting later in the day.

The Fed was likely to announce the conclusion of its asset purchasing stimulus program, known as quantitative easing, but was also expected to reassure markets that interest rates will remain on hold for some time to come.

Market players will be scrutinizing the Fed's statement for indications about a possible rate hike and its view on the global economy.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Recent signs of a slowdown in growth in Europe and China fuelled speculation the U.S. central bank could stick to its cautious outlook on monetary policy and delay possible rate hikes.

Meanwhile, oil traders awaited key weekly supply data to gauge the strength of oil demand from the world’s largest consumer.

The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles rose by 3.5 million barrels in the week ended October 24.

Elsewhere, on the ICE Futures Exchange in London, Brent for December delivery eased up 4 cents, or 0.05%, to hit $85.88 a barrel.

London-traded Brent prices have fallen nearly 26% since June, when it climbed near $116, while WTI futures are down almost 25% from a recent peak of $107.50 in June.

Concerns over weakening global demand combined with indications that the Organization of the Petroleum Exporting Countries will not cut output to support oil markets have weighed on prices in recent weeks.

Some market analysts believe that only a cut in production by the oil cartel will halt the decline in prices.

Oil ministers from the 12-member group are scheduled to meet in Vienna on November 27 to consider whether to adjust their production target for early 2015.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.