Oil Declines amidst Gloomy European Economic Data and Inventory Data Rumors

Oil Futures Bleak; Gold Shines for August Delivery
Oil Futures Bleak; Gold Shines for August Delivery

During the initial part of Asian trading on Wednesday, the oil futures were seen to be following declining trading trends, with dull economic data from Europe, as well as rumors related to inventory details slated be announced on Wednesday. According to data from the New York Mercantile Exchange, the Asian trading market on Wednesday showed that light sweet crude futures, scheduled for May delivery slid 0.47% to USD96.73 a barrel subsequent to staying down 0.21% at a value of USD96.87 per barrel during Tuesday in the U.S.

A look at the economic news in the U.S. highlights statements from the Commerce Department, which indicated that orders for manufactured goods has improved 3% in February, although economists had speculated a rise of 2.9%. There is also focus related to the U.S. Energy Information Administration, as they are expected to announce weekly data related to crude inventories and discussions among traders show that they anticipate an increase. That response is as expected, since U.S. oil output is elevated, however demand remains slow.

In other news, Brazil’s National Petroleum Agency stated output there declined 1.8% to an average value of 2.017 million barrels a day in February, as compared to readings in January. The February reading was seen to be 8.5% lower than the number recorded in the month of February 2012.

Official reports, announced on Tuesday, indicated that the unemployment rate in the Euro Zone was 12% in the month of February. The Markit Eurozone Manufacturing Purchasing Managers Index slid to 46.8 last month, which was way lower than the value of 47.9 recorded in February. Readings lower than 50 point to contraction. It was also observed that Brent crude scheduled for May delivery dropped 0.07% to a value of USD110.28 a barrel as per the ICE Futures Exchange.

Traders saw that gold futures are following higher trading trends in Asian trading on Wednesday, although French bank Societe Generale provided a bleak outlook for the precious yellow metal on Tuesday. Comex silver scheduled for May delivery slid 0.27% to a value of USD27.173 an ounce whereas copper increased 0.07% to USD3.374 an ounce.