Crude Oil Ends Higher, But Still Below $94

(RTTNews) - U.S. crude oil rebounded to end higher Wednesday, recouping some of the hefty losses recorded yesterday, ahead of the official weekly oil inventory report with investors optimistic of a dip in supplies as news filtered in of protests in Libya disrupting supplies. Nonetheless, there was also some skepticism with investors weighing prospects of the Federal Reserve slashing its monthly bond-buying program as early as December this year.

Light Sweet Crude Oil futures for December delivery, the most actively traded contract, gained $0.84 or 0.9 percent to close at $93.88 a barrel on the New York Mercantile Exchange Wednesday.

Crude prices for December delivery scaled a high of $94.54 a barrel intraday and a low of $92.93.

Yesterday, oil lost over 2 percent to settle at a 6-month low after both the Organization of the Petroleum Exporting Countries and the International Energy Agency painted a brighter supply outlook for crude oil. Investors were also weighed down by prospects of the Federal Reserve slashing its monthly bond-buying program as early as the year end.

The Organization of Petroleum Exporting Countries maintained its 2014 world oil demand growth forecast, while nudging up the growth forecast for 2013. In its monthly Oil Market Report on Tuesday, the OPEC maintained its 2014 global oil demand forecast at 1.04 mbd and nudged up 2013 forecast by 34,000 barrels per day based on actual and preliminary data for the first half of the year.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 80.93 on Wednesday, down from 81.15 late Tuesday in North American trade. The dollar scaled a high of 81.28 intraday and a low of 80.87.

The euro traded higher against the dollar at $1.3465 on Wednesday, as compared to its previous close of $1.3435 late Tuesday in North America. The euro scaled a high of $1.3470 intraday and a low of $1.3390.

In economic news, industrial production in the euro area decreased more-than-expected in September, after recording a modest growth in the previous month, latest data showed. Industrial production dropped a seasonally adjusted 0.5 percent month-on-month in September, reversing the previous month's 1 percent increase, statistical office Eurostat said. Economists had forecast a 0.3 percent contraction for September.

British unemployment claims declined more than expected by economists in October, while the jobless rate edged lower in the three-months to September, data from the Office for National Statistics showed. The claimant count for October fell by 41,700 from a month earlier to 1.31 million, the lowest level since January 2009. Economists had forecast a decline of 30,000. The claimant count rate fell to 3.9 percent from 4 percent in September.

Elsewhere, China's Communist Party agreed to offer bigger role for markets in the world's second largest economy as part of the sweeping reforms outlined by party leadership during the Third Plenum meeting that concluded in Beijing on Tuesday, with out providing further details.