Crude Oil Ends Lower As Supply Concerns Ease

(RTTNews) - U.S. crude oil slipped for a ninth straight day to end at a near seven-week low Wednesday, on easing concerns of supply disruption from the Middle East with reports of increased production and export from Libya. Oil prices plummeted despite an Energy Information Administration weekly report showed crude oil stockpiles in the U.S. to have declined, albeit less than expected last week.

Earlier today, a report from the U.S. Energy Information Administration showed U.S. crude oil inventories to have dropped 2.4 million barrels in the week ended July 4, with analysts anticipating a decline of 3.0 million barrels. The EIA report showed U.S. crude oil inventories at 382.6 million barrels, end last week.

Gasoline stocks rose by 0.7 million barrels last week, while analysts anticipated a drop of 1.0 million barrels. Inventories of distillate, including heating fuel, rose 0.2 million barrels, with analysts looking for an increase of 1.2 million barrels.

Late Tuesday, an American Petroleum Institute report showed crude inventories to have declined by a less than expected 1.7 million barrels in the week ended July 4.

Concerns of disruption of crude oil supplies over the ongoing conflict in the Middle East eased, after reports indicated that rebels controlling oil shipment ports will give up control of terminals which have remained closed for about a year. Libya is expected to provide crude of about 0.5 million barrels per day.

Reports indicate the Iraqi conflict will likely remain confined to north of the country also drove the prices downward.

Light Sweet Crude Oil futures for August delivery, the most actively traded contract, dropped $1.11 or 1.1 percent to close at $102.29 a barrel on the New York Mercantile Exchange Wednesday.

Crude prices for August delivery scaled a high of $103.60 a barrel intraday and a low of $102.10.

On Tuesday, crude oil futures ended lower, extending losses to an eighth successive session, amid easing fears of production disruption in Iraq and exports from Libya.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 80.12 on Wednesday, down from its previous close of 80.17 late Tuesday in North American trade. The dollar scaled a high of 80.23 intraday and a low of 80.02.

The euro traded higher against the dollar at $1.3625 on Wednesday, as compared to its previous close of $1.3612 late Tuesday in North American trade. The euro scaled a high of $1.3643 intraday and a low of $1.3604.

In economic news, Chinese consumer prices inflation slowed in June from a 4-month high, as food prices increased at a slower rate, a report from the National Bureau of Statistics showed Wednesday. Nevertheless, the increase was slightly below the consensus estimate.

Consumer prices increased 2.3 percent year-on-year in June following the 2.5 percent increase in May. Economists had expected prices to rise 2.4 percent.