Crude oil futures edge lower ahead of U.S. data

Investing.com - Crude oil futures edged lower on Thursday, as investors looked ahead to the release of key U.S. economic data later in the day to help assess the timing for a reduction in the Federal Reserve’s bond purchasing program.

On the New York Mercantile Exchange, light sweet crude futures for delivery in December traded at USD94.70 a barrel during European morning trade, down 0.1%.

New York-traded oil futures traded in a range between USD94.55 a barrel, the daily low and a session high of USD95.00 a barrel.

The December contract rose to USD95.40 a barrel on Wednesday, the highest since November 1, before settling at USD94.80 a barrel, up 1.53%.

Oil futures were likely to find support at USD93.11 a barrel, the low from November 5 and resistance at USD96.64 a barrel, the high from November 1.

Wednesday’s gains came after a government report showed that U.S. oil supplies rose less-than-expected last week, while gasoline inventories fell sharply.

The U.S. Energy Information Administration said that crude oil inventories rose by 1.57 million barrels last week, compared to expectations for an increase of 1.63 million barrels.

Total U.S. crude oil inventories stood at 385.4 million barrels, the highest since June.

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.

Market players awaited key U.S. economic data later in the day to gauge the strength of the economy.

The U.S. is set to release preliminary data on third quarter economic growth later in the day, while October’s highly-anticipated nonfarm payrolls report is scheduled for Friday.

U.S. crude prices have been on a downward trend in recent weeks amid concerns the recent U.S. government shutdown created a drag on economic growth and eroded demand in the world’s largest oil consumer.

Investors will also be awaiting the outcome of the ECB’s policy meeting later Thursday.

While no policy change was expected from the central bank, many investors expected the ECB to signal the possibility of further monetary policy easing at its meeting in December.

Elsewhere, on the ICE Futures Exchange, Brent oil futures for December delivery shed 0.3% to trade at USD104.96 a barrel, with the spread between the Brent and crude contracts standing at USD10.26 a barrel.

London-traded Brent prices fell to USD104.66 a barrel earlier in the session, the lowest since July 3.