Crude Oil Ends Higher As U.S. Stockpiles Decline

(RTTNews) - U.S. crude oil rebounded to end higher on Wednesday, after a report from the Energy Information Administration showed crude stockpiles in the U.S. to have declined more than expected last week.

Nevertheless, the gains were somewhat limited after a slew of some largely tepid economic data from the U.S. and Europe, even as lingering concerns of excess supply and a strong dollar weighed down prices.

Earlier today, a weekly report from the U.S. Energy Information Administration showed U.S. crude oil inventories to have declined 3.7 million barrels in the week ended November 28, while analysts expected a 1.3 million barrels increase. The EIA report showed U.S. crude oil inventories at 379.3 million barrels, end last week.

Gasoline stocks rose 2.1 million barrels last week, while analysts anticipated a gain of 1.1 million barrels. Inventories of distillate, including heating fuel, increased 3.0 million barrels last week.

Late Tuesday, data from the American Petroleum Institute showed U.S. crude stockpiles to have declined 6.5 million barrels last week.

In some soft data from the U.S., labor productivity rose more than previously estimated in the third quarter, although the upwardly revised increase came in below expectations.

A report from payroll processor ADP showed a notable increase in U.S. private sector employment in November, although the pace of growth was short of economist estimates.

From the eurozone, private sector growth in November was at its weakest in 16 months, slightly less than previously estimated, as new orders declined for the first time in over a year.

On a positive note, U.S. service sector activity accelerated more than anticipated in November, with the index of activity rebounding after falling in the two previous months.

Light Sweet Crude Oil futures for January delivery, the most actively traded contract, gained $0.50 or 0.7 percent to close at $67.38 a barrel on the New York Mercantile Exchange Wednesday.

Crude prices for January delivery scaled a high of $68.23 a barrel intraday and a low of $66.80.

On Tuesday, crude oil futures ended at at $66.88 a barrel, down $2.12 or 3.1 percent, on a strong dollar amid supply glut worries with reports the OPEC pumped 30.56 million barrels a day in November, exceeding its official target for a sixth straight month.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 88.97 on Wednesday, up from its previous close of 88.63 late Tuesday in North American trade. The dollar scaled a high of 89.01 intraday and a low of 88.58.

The euro trended lower against the dollar at $1.2304 on Wednesday, as compared to its previous close of $1.2383 late Tuesday in North American trade. The euro scaled a high of $1.2390 intraday and a low of $1.2302.

In economic news from the U.S., a report from payroll processor ADP showed a notable increase of 208,000 jobs in private sector employment in November. However, that was less than economists' forecast for an increase of 225,000 jobs.

A report from the Institute for Supply Management showed U.S. service sector activity to have accelerated much more than anticipated in November, with the non-manufacturing index jumping to 59.3 in November, from 57.1 in the preceding month.

A report from the U.S. Labor Department showed labor productivity to have increased by an upwardly revised 2.3 percent in the third quarter, compared to the previously reported 2.0 percent growth.

The services sector in China continued to expand at a slightly faster rate in November, the latest data from HSBC Bank revealed on Wednesday, with a PMI score of 53.0, up marginally from 52.9 in October.

Eurozone's private sector growth in November signaled growth for the seventeenth month in a row, final figures of a survey by Markit Economics revealed Wednesday. The Composite Purchasing Managers' Index dropped to 51.1 from 52.1 in October. The flash estimate for the November was 51.4.

Eurozone retail sales rebounded in October after a decline in the previous month, but fell short of economists' expectations, data from Eurostat revealed. Retail sales grew 0.4 percent in October from a decline of 1.2 percent in September, revised from 1.3 percent. Economists expected a 0.5 percent increase for October.

Germany's private sector growth slowed more than expected in November to its lowest level in 17 months, survey results from Markit Economics revealed Wednesday. The Composite Output Index declined to 51.7 from October's 53.9. The flash estimate for the index was 52.1.

The services sector in Japan swung back to expansion in November, a survey from Markit Economics showed on Wednesday, with a PMI score of 51.2, up from 48.7 in October.