Crude Oil Ends Flat On Data, Lower Stockpiles

(RTTNews) - U.S. crude oil ended flat on Wednesday, after an official weekly report from the Energy Information Administration showed crude oil stockpiles in the U.S. to have declined much more than anticipated, even as the dollar trended higher against a select band of currencies.

Earlier today, data released by the U.S. Energy Information Administration showed U.S. crude oil inventories to have declined 3.4 million barrels in the week ended May 30, with analysts anticipating a drop of 2.0 million barrels. The EIA report also showed stocks at the Cushing storage hub to have declined about 0.3 million barrels to 21.4 million barrels last week.

Gasoline stocks rose by 0.2 million barrels last week, while analysts anticipated a jump of 2.0 million barrels. Inventories of distillate, including heating fuel, jumped 2.0 million barrels, with analysts anticipating a decrease of 1.0 million barrels.

The American Petroleum Institute late Tuesday said crude inventories declined by a larger than expected 1.4 million barrels to 382.5 million barrels in the week ended May 30.

Investors also weighed some mixed economic data, with U.S. trade deficit widening more than expected in April, while ADP data showed private sector jobs to have risen less than expected in May. Nonetheless, both U.S. and Chinese purchasing managers' index for the non-manufacturing sector rose more than expected in May.

Light Sweet Crude Oil futures for July delivery, the most actively traded contract, edged down $0.02 to close at $102.64 a barrel on the New York Mercantile Exchange Wednesday.

Crude prices for July delivery scaled a high of $103.69 a barrel intraday and a low of $102.53.

On Tuesday, crude oil futures ended higher with lingering concerns over Ukraine and worries about supply from Libya supported oil to an extent.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 80.65 on Wednesday, up from its previous close of 80.54 late Tuesday in North American trade. The dollar scaled a high of 80.68 intraday and a low of 80.48.

The euro traded lower against the dollar at $1.3604 on Wednesday, as compared to its previous close of $1.3627 late Tuesday in North American trade. The euro scaled a high of $1.3640 intraday and a low of $1.3600.

In economic news, a report from payroll processor ADP on Wednesday showed the pace of job growth slowed by more than expected in May, after having reported a strong post-winter rebound in U.S. private sector employment in April. Private sector employment rose by 179,000 jobs in May following a downwardly revised increase of 215,000 jobs in April. Economists expected an increase of about 210,000 jobs compared to the addition of 220,000 jobs originally reported for the previous month.

The Institute for Supply Management's non-manufacturing index for the U.S. climbed to 56.3 in May from 55.2 in April, with a reading above 50 indicating growth in the service sector. Economists expected the index to show a modest increase to a reading of 55.5. This is the highest level of the the non-manufacturing index since reaching 57.9 in August 2013.

Labor productivity in the U.S. fell much more than previously estimated in the first quarter, with rough winter weather negatively impacting output, a report from the Labor Department showed Wednesday. Productivity tumbled by a revised 3.2 percent in the first quarter compared to the previously reported 1.7 percent drop. Economists expected productivity to fall by a revised 2.9 percent.

A Commerce Department report on Wednesday showed the U.S. trade deficit to have widened much more than expected in April, reflecting a drop in the value of exports and an increase in the value of imports. U.S. trade deficit widened to $47.2 billion in April from a revised $44.2 billion in March. Economists expected the deficit to edge up to $41.0 billion from the $40.4 billion originally reported for the previous month. This is the biggest U.S. trade deficit since the $47.8 billion deficit recorded in April 2012.

A report from Eurostat showed gross domestic product in the 18-nation currency bloc eurozone grew 0.2 percent sequentially, slower than the revised 0.3 percent expansion posted in the fourth quarter of 2013. Nonetheless, the slowdown in first quarter growth and signals of weaker recovery in the quarter-ahead, amid falling producer prices, boosted hopes of policy action from the European Central Bank as early as tomorrow.

The non-manufacturing Purchasing Managers' Index for China climbed to 55.5 in May from 54.8 in April, a report from the National Bureau of Statistics and the China Federation of Logistics and Purchasing showed Wednesday.