Crude Oil Rises On Dollar, Inventory Data

Sponsored Links

Crude oil prices surged toward $78 per barrel on Wednesday, boosted by a weaker dollar and smaller-than-expected build in weekly inventories.

Light sweet crude for January rallied to $77.97 per barrel, up $1.94 on the session. Prices reached as high as $77.99.

The dollar dropped as low as 1.5143 against the euro, the its lowest level since August 2008. The greenback reached an eight-month low versus the yen and lingered near a weekly low against the sterling.

The Energy Information Administration said crude oil inventories increased by 1.0 million barrels to 337.8 million barrels in the week ended November 20. Crude oil supplies were forecast to increase 1.4 million barrels in the week ended November 20.

Gasoline inventories increased by 1.0 million barrels last week, and are slightly above the upper limit of the average range. Stockpiles were expected to rise 500,000 barrels.

Distillate fuel inventories decreased by 500,000 barrels. Propane/propylene inventories decreased by 1.9 million barrels last week.

The American Petroleum Institute reported yesterday that crude supplies jumped 3.35 million barrels, while gasoline stockpiles added 1.7 million barrels and distillates declined 2.36 million.

In U.S. economic news, the Labor Department revealed that initial jobless claims dropped 35,000 last week to a level of 466,000. This was the first reading below 500,000 this early January.

The Commerce Department report showed that personal income increased by 0.2% in October following a revised 0.2% increase in September. Economists had been expecting income to edge up by 0.1%.

A separate Commerce Department report showed that orders for durable goods fell 0.6 percent in October following a revised 2.0 percent increase in September. Economists had expected orders to increase by 0.5%.

Later, another Commerce Department report showed that new home sales rose 6.2 percent to an annual rate of 430,000 in October from the revised September rate of 405,000. Economists had expected sales to edge up to 404,000.

The University of Michigan/Reuters consumer sentiment index rose to 67.4 in November. A reading of 67.0 was expected, compared to 66.0 in October.

(Market News Provided by RTTNews)