Crude Oil Ends Lower As Stockpiles Rise

(RTTNews) - U.S. crude oil ended lower for a fifth straight session Wednesday, on renewed fears of a supply glut after official data from the Energy Information Administration showed crude stockpiles in the U.S. to have increased more than expected last week.

Earlier today, a weekly report from the U.S. Energy Information Administration said U.S. crude oil inventories increased 0.4 million barrels in the week ended July 3, while analysts expected stocks to decline 1.1 million barrels. The report showed total U.S. crude oil inventories at 465.8 million barrels end last week.

Nevertheless, EIA said oil production in the U.S. edged down to 9.18 million barrels a day, from a week earlier.

Stocks at Cushing, Oklahoma, the key delivery point for Nymex crude, increased 0.22 million barrels last week, while it was estimated to drop by 0.10 million barrels.

Gasoline stocks increased 1.2 million barrels last week, while analysts expected a decline of 0.4 million barrels. Inventories of distillate, including heating fuel, rose 1.6 million barrels last week, even as analysts anticipated an increase of 0.4 million.

Data from the oil and gas industry trade group American Petroleum Institute late Tuesday showed U.S. crude oil stocks to have risen by 0.96 million barrels last week.

Investors also weighed the Chinese stock markets plunge, with renewed worries over demand in the second largest energy consumer in the world.

The Shanghai Composite shed 5.9 percent, down 32 percent since scaling a near 7-1/2-year high early June. It appears the sops introduced by the Beijing had little or no effect on equity markets.

China's passenger vehicle sales declined for the first time since 2013 as weak economic growth weighed on auto demand. Car sales were down 3.2 percent to 1.43 million units year-on-year in June, a report from the China Passenger Car Association showed Wednesday.

Investors also continued to monitor the Greek bailout talks, with Athens requesting a three-year bailout while promising new reforms. The Wall Street Journal reports that Athens will offer some austerity measures to be implemented next week in return for financing.

Light Sweet Crude Oil futures for August delivery, the most actively traded contract, dropped $0.68 or 1.3 percent, to settle at $51.65 a barrel on the New York Mercantile Exchange Wednesday.

Crude prices for August delivery scaled a high of $52.96 a barrel intraday and a low of $50.81.

On Tuesday, crude oil prices shed $0.20 or 0.4 percent, to settle at $52.33 a barrel, as the dollar strengthened and investors monitoring the Iran nuclear program talks which was reportedly extended until Friday.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 96.39 on Wednesday, down from its previous close of 96.77 on Tuesday in late North American trade. The dollar scaled a high of 96.88 intraday and a low of 96.12.

The euro trended higher against the dollar at $1.1052 on Wednesday, as compared to its previous close of $1.1012 in North American trade late Tuesday. The euro scaled a high of $1.1094 intraday and a low of $1.0975.

On the economic front, U.K. house prices grew at the fastest pace in nine months in June, data from Lloyds Banking Group's Halifax division showed Wednesday. House prices advanced 9.6 percent year-on-year in three months to June, a similar rate of growth was last seen in September 2014. Economists had forecast the rate to ease to 8.3 percent from 8.6 percent in three months to May.

Permanent job placements in the UK increased at the slowest pace in over two years in June, the Report on Jobs compiled by the Recruitment and Employment Confederation and KPMG showed Wednesday. The number of people placed in permanent jobs rose again in June, but the rate of expansion eased to the slowest in 25 months.

Shop prices in the United Kingdom were down 1.3 percent on year in June, the British Retail Consortium said on Wednesday, following the 1.9 percent decline in May. Food prices eased 0.4 percent in June, the data showed, while non-food prices dropped almost 2.0 percent.