Forexpros – Crude oil futures erased losses to trade modestly higher during U.S. morning trade on Wednesday, after a U.S. government report showed oil supplies fell more-than-expected last week.
On the New York Mercantile Exchange, light sweet crude futures for delivery in September traded at USD93.56 a barrel during U.S. morning trade, easing up 0.15%.
It earlier fell by as much as 0.8% to trade at a session low of USD92.70 a barrel. Prices hit a three-month high of USD94.69 on August 8.
The U.S. EIA said in its weekly report that U.S. crude oil inventories declined by 3.7 million barrels in the week ended August 10, compared to expectations for a decline of 1.73 million barrels. U.S. crude supplies fell by 3.73 million barrels in the preceding week.
Total U.S. crude oil inventories stood at 366.2 million barrels as of last week.
Total motor gasoline inventories decreased by 2.4 million barrels, beating expectations for a decline of 1.48 million barrels, after falling by 1.8 million barrels in the preceding week.
Prices were lower earlier, following the release of disappointing U.S. economic data on manufacturing activity and consumer prices.
Official data showed that consumer price inflation in the U.S. was flat in July for the second successive month, compared to expectations for a 0.2% increase.
Core consumer prices, which exclude food and energy prices, rose 0.1%, less than the expected 0.2% increase, following a 0.2% rise in June.
Meanwhile, the New York Federal Reserve’s index of manufacturing conditions deteriorated significantly more-than-expected this month, contracting for the first time since October 2011.
The Federal Reserve Bank of New York said that its general business conditions index came in at minus 5.8 in August, down sharply from a reading of 7.4 in July. Analysts had expected the index fall to 6.5 in August.
Another report showed that industrial production in the U.S. rose slightly more-than-expected in July, climbing 0.6%, just above expectations for a 0.5% increase.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for October delivery rose 0.65% to trade at USD112.88 a barrel, with the spread between the Brent and crude contracts standing at USD19.32.
London-traded Brent prices touched USD113.52 on August 10, the highest since May 10.
Brent prices have been well-supported in recent weeks, rallying nearly 20% from the lows touched in June, amid growing concerns over tightening supplies from the North Sea region and following the launch of Western-led sanctions targeting Iranian oil exports on July 1.
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