WSJ: OIL FUTURES Crude Steady Ahead Of US Inventory Data
By David Bird
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Crude oil futures prices were little changed early Wednesday, awaiting U.S. oil inventory data and the outcome of the U.S. Federal Reserve's policy board meeting later in the day.
Prices rattled around either side of unchanged, with a slightly firmer dollar helping to tamp down any upside moves stirred by hints that U.S. crude oil inventories may have declines, rather than risen, as expected, in the latest week.
At 8:58 AM ET, March crude was down 1 cent at $74.70 a barrel, after trading between $74.44 and $75.09 a barrel.
February RBOB gasoline futures prices retained their unusual January premium over heating oil, amid high U.S. inventories, and ahead of the expiration of contracts on Friday.
Nymex February gasoline was up 44 points at $1.9718 a gallon, while heating oil was up 69 points, at $1.9577 a gallon.
Traders are awaiting U.S. oil inventory data for the week ended Jan. 22, scheduled for release at 10:30 AM ET by the Energy Information Administration to see if it collaborates or refutes an industry report for the same period. Analysts surveyed by Dow Jones Newswires expected crude stocks to rise by 900,000 barrels, with forecasts ranging from a drop of 3.0 million barrels to a gain of 3 million barrels.
The American Petroleum Institute said Tuesday that crude stocks fell 2.225 million barrels in the week.
Analysts also expected gasoline stocks to show a 600,000 barrel rise, with forecasts ranging from a drop of 1.5 million barrels to a gain of 2.3 million barrels. Distillate stocks (diesel/heating oil) were expected to drop 1.6 million barrels, with forecasts ranging from a drop of 3.7 million barrels to a rise of 2 million barrels. Refiners were expected to keep runs unchanged on the week.
API data was close to expectations, as it showed gasoline stocks rose 916,000 barrels and distillate stocks fell 1.978 million barrels. Refinery runs increased 0.3 percentage points, API said.
Still, some analysts believe the data will have to be resoundingly bullish to lift the market from its recent prolonged slump. "The short-term trend is still intact, setting up what we think will be an imminent test of trend-line support between the $70-$73 levels," said Edward Meir, senior commodity analyst at MF Global.
Traders will also look to the statement from the Federal Open Market Committee meeting Wednesday for any hints of change in interest rate policy, though none are expected.
