Crude Oil Ends Above $101 On Supply Data

(RTTNews) - U.S. crude oil moved up sharply to end higher Wednesday, amid expectations of increased demand on the back of some upbeat Chinese GDP data even as the official weekly oil report from the U.S. Energy Information Administration showed crude stockpiles to have declined more than expected last week.

Earlier today, a report from the U.S. Energy Information Administration showed U.S. crude oil inventories to have surprisingly dropped 7.5 million barrels in the week ended July 11, with analysts anticipating a decline of 2.1 million barrels. The EIA report showed U.S. crude oil inventories at 375.0 million barrels, end last week.

Gasoline stocks rose by 0.2 million barrels last week, while analysts anticipated a rise of 1.2 million barrels. Inventories of distillate, including heating fuel, rose 2.5 million barrels, with analysts looking for an increase of 2.0 million barrels.

A report from the American Petroleum Institute late Tuesday showed U.S. crude inventories to have declined by a larger than expected 4.8 million barrels in the week ended July 11.

Meanwhile, reports from the Middle East said Iraqi forces have retreated from central Tikrit after fierce fighting with suspected ISIS militants that resulted in the death of more than 50 soldiers.

The U.S. Federal Reserve Chair Janet Yellen continuing her testimony before the House Financial Services Committee on Wednesday, rejected a GOP bill that would require the Fed to follow a mathematical rule for when to raise or lower interest rates. Yellen said it would be a "grave mistake" for Fed to commit to follow a rigid metric.

Light Sweet Crude Oil futures for August delivery, the most actively traded contract, jumped $1.24 or 1.2 percent to close at $101.20 a barrel on the New York Mercantile Exchange Wednesday.

Crude prices for August delivery scaled a high of $101.39 a barrel intraday and a low of $100.07.

On Tuesday, crude oil had ended lower amid expectations of a global supply glut.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 80.55 on Wednesday, up from its previous close of 80.38 late Tuesday in North American trade. The dollar scaled a high of 80.58 intraday and a low of 80.38.

The euro traded lower against the dollar at $1.3523 on Wednesday, as compared to its previous close of $1.3569 late Tuesday in North American trade. The euro scaled a high of $1.3630 intraday and a low of $1.3562.

In economic news, a report from the U.S. Federal Reserve showed industrial production to have risen by a less than expected 0.2 percent in June, compared to economist estimates for a 0.4 percent increase.

Data from the U.S. Labor Department showed producer prices to have risen 0.4 percent in June, due largely due to a rebound in energy prices, following a 0.2 percent drop in May. Economists expected June prices to increase by about 0.2 percent.

A National Association of Home Builders report on Wednesday showed homebuilder confidence in the U.S. to have improved more than anticipated in July, with the NAHB/Wells Fargo Housing Market Index climbing to 53 in July from 49 in June. Economists expected a more modest increase to a reading of 50. This is the first time builder confidence has been above 50 since January this year.

According to a report from China's National Bureau of Statistics, gross domestic product expanded 7.5 percent on year in the second quarter of 2014, beating forecasts for a 7.4 percent increase. On a seasonally adjusted quarterly basis, GDP gained an annualized 2.0 percent - also beating expectations for 1.8 percent and accelerating from 1.4 percent in the first quarter.

Meanwhile, China's housing sales declined in the first half of 2014, data from the National Bureau of Statistics showed Wednesday, with home sales down 9.2 percent to CNY 2.56 trillion, from last year. Meanwhile, property investment surged about 14 percent to CNY 4.2 trillion.