U.S. oil futures turn lower ahead of API supply data
Investing.com
Published Sep 09, 2015 10:34AM ET
Oil futures reverse gains in choppy trade
Investing.com - U.S. oil futures turned lower in choppy trade on Wednesday, as market players looked ahead to weekly data on U.S. stockpiles of crude and refined products later in the day.
Crude oil for delivery in October on the New York Mercantile Exchange shed 66 cents, or 1.44%, to trade at $45.28 a barrel during U.S. morning hours. A day earlier, Nymex oil futures dipped 11 cents, or 0.24%.
Market players looked ahead to fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of demand in the world’s largest oil consumer.
The American Petroleum Institute will release its inventories report later in the day, while Thursday’s government report could show crude stockpiles rose by 0.1 million barrels in the week ended September 4.
The reports come out one day later than usual due to Monday's Labor Day holiday in the U.S.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for October delivery declined 62 cents, or 1.24%, to trade at $48.90 a barrel. On Tuesday, London-traded Brent futures soared $1.89, or 3.97%.
Oil prices were higher during the Asian trading session as appetite for riskier assets improved amid hopes for more stimulus measures from China and Japan.
But futures soon reversed gains as ongoing worries over the health of the global economy fueled concerns that a global supply glut may stick around for longer than anticipated.
Global oil production is outpacing demand following a boom in U.S. shale oil production and after a decision by the OPEC last year not to cut production.
Meanwhile, the spread between the Brent and the WTI crude contracts stood at $3.62 a barrel, compared to $3.58 by close of trade on Tuesday.
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Written By: Investing.com
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