Crude Oil Ends Slightly Lower On Supply Data

(RTTNews) - U.S. crude oil ended a shade lower Wednesday, after the official Energy Information Administration's weekly oil report showed U.S. crude stockpiles to have increased last week, albeit less than what analysts expected. Some mixed macroeconomic data out of the U.S. also impacted oil prices, even as news trickled in that the U.S. Federal Reserve has preferred to continue its quantitative easing program, although indications were members favored slowing down the pace of buying soon.

The Energy Information Administration in its weekly oil report revealed U.S. crude oil inventories to have gained 0.40 million barrels with gasoline stocks shedding 0.30 million barrels in the week ended November 15. Analysts expected crude oil inventories to rise 0.70 million barrels last week.

In some encouraging economic news, retail sales in the U.S. rose more than expected in October, partly due to a rebound in auto sales, a report from the Commerce Department showed Wednesday. Meanwhile, U.S. consumer prices in October dipped unexpectedly, with energy prices registering a notable decrease.

On the negative side, existing home sales in the U.S. fell for a second consecutive month in October, a report from the National Association of Realtors showed Wednesday. Meanwhile, business inventories in the U.S. rose more than expected in September, a Commerce Department report revealed.

Light Sweet Crude Oil futures for January delivery, the most actively traded contract, dipped $0.04 to close at $93.85 a barrel on the New York Mercantile Exchange Wednesday.

Crude prices for January delivery scaled a high of $94.48 a barrel intraday and a low of $93.25.

Crude Oil futures for December delivery dropped $0.01 to close at $93.33 a barrel Wednesday.

Yesterday oil settled higher after fluctuating for much of the session, ahead of the official inventories report with investors awaiting the outcome of the Federal Reserve policy meet. The escalating violence in Libya also renewed supply disruption concerns from the region, with uncertainties over the upcoming talks with Iran on its nuclear program.

Tuesday, the American Petroleum Institute said US crude oil inventories gained 512,000 barrels in the week ended November 15.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 81.02 on Wednesday, up from 80.54 late Tuesday in North American trade. The dollar scaled a high of 81.03 intraday and a low of 80.53.

The euro traded lower against the dollar at $1.3435 on Wednesday, as compared to its previous close of $1.3538 late Tuesday in North America. The euro scaled a high of $1.3577 intraday and a low of $1.3430.

In economic news from the U.S, the Labor Department said its consumer price index edged down by 0.1 percent in October after rising 0.2 percent in September. Economists, however, expected the index to come in unchanged. Core consumer prices, which exclude food and energy prices, inched up by 0.1 percent for the third straight month, while economists expected core prices to rise by 0.2 percent.

Separately, the U.S. Commerce Department said retail sales rose by 0.4 percent in October, while revised data showed sales were unchanged in September. Economists expected retail sales to edge up 0.1 percent compared to the 0.1 percent drop originally reported for the previous month.

The National Association of Realtors said existing home sales dropped 3.2 percent to an annual rate of 5.12 million units in October after sliding 1.9 percent to an annual rate of 5.29 million units in September. Economists expected sales to decline to an annual rate of 5.13 million units. Notwithstanding the second straight monthly decrease, existing home sales remain 6.0 percent higher than the 4.83 million-unit level in October 2012.

Elsewhere, the U.S. Commerce Department said business inventories increased 0.6 percent in September after rising 0.4 percent in August. Economists expected inventories to increase by about 0.3 percent. Retail inventories jumped 0.9 percent, while inventories at both manufacturers and merchant wholesalers rose by 0.4 percent. The Commerce Department also said business sales edged up by 0.2 percent in September following a 0.3 percent increase in August.

From the eurozone, Germany's producer prices declined for the third successive month in October, and at a faster pace than expected by economists, latest data showed. The industrial producer price index declined 0.7 percent on an annual basis in October, following the 0.5 percent drop in September, the Federal Statistical Office said. Prices have fallen for the third month in a row, while economists forecast a slower decline of 0.6 percent for October.

Elsewhere, the Bank of England policymakers unanimously decided to retain the record-low interest rate and the asset purchase program at GBP 375 billion, minutes of the meeting revealed. All nine members of the Monetary Policy Committee voted to retain the interest rate at 0.50 percent at the meeting held on November 6 and 7.