Crude Oil Ends Lower Ahead Of OPEC Meet, Strong Supply Data

(RTTNews) - U.S. crude oil ended lower for a third straight session on Wednesday, after a report from the Energy Information Administration showed crude stockpiles in the U.S. increased more than expected last week and with investors focused on the upcoming crucial OPEC meet in Vienna tomorrow.

Earlier today, a weekly report from the U.S. Energy Information Administration showed U.S. crude oil inventories rose 1.9 million barrels in the week ended November 21, while analysts expected a 0.5 million barrels increase. The EIA report showed U.S. crude oil inventories at 383.0 million barrels, end last week.

Gasoline stocks rose 1.8 million barrels last week, while analysts anticipated a gain of 1.5 million barrels. Inventories of distillate, including heating fuel, dropped 1.6 million barrels last week.

Data released by the American Petroleum Institute Tuesday afternoon showed U.S. crude inventories to have risen by 2.8 million barrels last week.

Uncertainties continued over the possibility of a consensus to trim production, with some unconfirmed reports indicating the OPEC meet may see member countries arrive at a compromise formula to cut production.

Right now, OPEC members are divided on whether to cut supplies in order to lift crude oil prices at the forthcoming meeting. The Saudis have already stated that would rather have lower prices than agreeing for a production cut.

Oil prices also came under pressure after some soft economic data out of the U.S., with first-time claims for unemployment benefits unexpectedly increasing last week, while a Thomson Reuters and the University of Michigan report showed consumer sentiment to have improved less than previously estimated in November.

Light Sweet Crude Oil futures for January delivery, the most actively traded contract, edged down $0.40 to close at $73.69 a barrel on the New York Mercantile Exchange Wednesday.

Crude prices for January delivery scaled a high of $74.48 a barrel intraday and a low of $73.30.

On Tuesday, crude oil futures ended down $1.69 or 2.2 percent at $74.09 a barrel, with investors focused on the upcoming OPEC meet later this week.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 87.63 on Wednesday, down from its previous close of 87.90 late Tuesday in North American trade. The dollar scaled a high of 88.04 intraday and a low of 87.52.

The euro trended higher against the dollar at $1.2507 on Wednesday, as compared to its previous close of $1.2475 late Tuesday in North American trade. The euro scaled a high of $1.2530 intraday and a low of $1.2444.

On the economic front, a report from the U.S. Labor Department on Wednesday showed initial jobless claims to have unexpectedly risen to 313,000 in the week ended November 22nd, up 21,000 from the previous week's revised level of 292,000.

Meanwhile, a report from the U.S. Commerce Department showed durable goods orders to have unexpectedly climbed by 0.4 percent in October following a revised 0.9 percent decline in the preceding month.

New home sales in the U.S. saw a modest increase in October, a Commerce Department report showed Wednesday. New home sales rose 0.7 percent to a seasonally adjusted annual rate of 458,000 in October from the revised September rate of 455,000. Economists expected new home sales to climb 0.6 percent to a rate of 470,000 from the 467,000 originally reported for the previous month.

Pending home sales in the U.S. unexpectedly decreased in October but remained at a healthy level, the National Association of Realtors said in a report on Wednesday. The pending home sales index tumbled 1.1 percent to 104.1 in October from an upwardly-revised 105.3 in September. Economists expected pending home sales to increase by about 0.6 percent.

A pending home sale is one in which a contract was signed but not yet closed. Normally, it takes four to six weeks to close a contracted sale.

Consumer sentiment in the U.S. improved less than previously estimated in November, a report from Thomson Reuters and the University of Michigan showed Wednesday. The consumer sentiment index for November was downwardly revised to 88.8 from the mid-month reading of 89.4. Economists expected the index to be upwardly revised to 90.0.

Personal income in the U.S. rose less than expected in October, with the increase in personal spending also falling short of economist estimates, a report from the Commerce Department said Wednesday. The report said personal income edged up 0.2 percent in October, matching the increase seen in September. Economists expected income to increase by about 0.4 percent.

MNI Indicators' Chicago business barometer dropped to 60.8 in November from a one-year high of 66.2 in October. Economists expected a more modest decreased reading of 63.2.

From Europe, the U.K. economy registered robust growth as estimated in the third quarter with strength in consumer spending offsetting weakness in exports and business investment. U.K. gross domestic product grew 0.7 percent sequentially in the third quarter, unrevised from the previous estimate published on October 24, second estimates from the Office for National Statistics showed Wednesday. This follows a 0.9 percent expansion in the second quarter. Year-on-year, GDP increased 3 percent, in line with preliminary estimate.