Crude Oil Ends Higher After Supply Data

(RTTNews) - U.S. crude oil ended higher Wednesday, after the official Energy Information Administration weekly report showed crude stockpiles in the U.S. to have increased last week, albeit less than expected. Oil prices pared some of the gains after data showed private sector employment in the U.S. increased less than expected.

Earlier today, data from the Energy Information Administration revealed US crude oil inventories to have moved up 0.40 million barrels, while gasoline stocks rose 0.50 million barrels in the week ended January 31. Analysts expected crude oil inventories to gain 1.5 million barrels last week, with gasoline stocks anticipated to climb 1.5 million barrels.

In some significant economic news, employment in the U.S. private sector increased less than expected in January, a report from ADP and Moody's Analytics showed Wednesday. Meanwhile, data from the Institute for Supply Management's service sector survey showed that activity in the sector grew at a faster rate in January, with most respondents reflecting an improvement in business conditions.

Light Sweet Crude Oil futures for March delivery, the most actively traded contract, gained $0.19 or 0.2 percent to close at $97.38 a barrel on the New York Mercantile Exchange Wednesday.

Crude prices for March delivery scaled a high of $98.26 a barrel intraday and a low of $96.80.

Yesterday, oil ended higher ahead of the official supply data from the Energy Information Administration, with investors tracking rising natural gas prices.

The American Petroleum Institute, an industry group, reported late Tuesday that U.S. crude stockpiles rose 0.38 million barrels for the week-ended January 31. Analysts expected inventories of more than 1.4 million barrels.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 81.04 on Wednesday, down from its previous close of 81.15 late Tuesday in North American trade. The dollar scaled a high of 81.24 intraday and a low of 80.90.

The euro traded higher against the dollar at $1.3533 on Wednesday, as compared to its previous close of $1.3519 late Tuesday in North America. The euro scaled a high of $1.3554 intraday and a low of $1.3500.

In economic news, the results of the Institute for Supply Management's service sector survey showed activity in the sector grew at a slightly faster rate in January. The ISM's non-manufacturing index edged up to 54.0 in January from 53.0 in December, with a reading above 50 indicating growth in the sector. Economists expected the index to show a reading of 53.7.

Employment in the U.S. private sector increased in January, but less than what analysts expected, a report from ADP and Moody's Analytics showed Wednesday. Private sector employment increased by 175,000 jobs in January following a downwardly revised increase of 227,000 jobs in December. Economists expected private sector employment to rise by about 180,000 jobs.

From Europe, U.K. service sector growth slowed unexpectedly to a seven-month low at the start of the year as new business growth posted weaker growth. The seasonally adjusted Purchasing Managers' Index for the service sector fell to 58.3 in January from 58.8 in December, hitting the lowest level in seven months, data from Markit Economics and the the Chartered Institute of Purchasing and Supply showed Wednesday.