Oil Futures Mixed Ahead of EIA Data

Oil Futures Mixed Ahead of EIA Data

OLD BRIDGE, N.J. (DTN) -- Oil futures nearest to delivery traded on the New York Mercantile Exchange and Brent crude on the Intercontinental Exchange were mixed in thin early trade today, as market participants wait on weekly government supply data and interest rate direction from the Federal Reserve.

Energy Information Administration supply data will be released at 10:30 AM ET.

Mixed trade follows a down session on Tuesday, and after the American Petroleum Institute reported an unexpected build in gasoline inventory for last week, pressuring RBOB futures overnight.

At 9:00 AM ET, NYMEX June WTI futures were unchanged at $67.25 bbl, with ICE July Brent $0.37 lower at $72.76 bbl. NYMEX June RBOB futures were $0.0174 lower at $2.0702 gallon with the June ULSD contract little changed at $2.0936 gallon.

The American Petroleum Institute late Tuesday afternoon reported a 1.6 million bbl increase in U.S. commercial gasoline supply during the week-ended April 27, which compared to wire service estimates calling for a drawdown between 500,000 bbl and 1.0 million bbl.

"We have the EIA data and the Fed interest rate information coming out so the markets are pulling back a bit, " said Phil Flynn, senior market analyst at Price Futures Group. "Until they get a sense as to whether the Fed is going to be more or less aggressive on rate hikes they're pulling back their horns."

The U.S. dollar remained little changed, holding below Tuesdays four-month high in index trading against a basket of currencies on the second day of a two-day meeting by the Federal Open Market Committee. The central bank is expected to hike the federal funds rate two more times in 2018 after a 0.25% increase early in the year to a 1.75% decade high.

The market will scrutinize the FOMC statement this afternoon for clues of near-term monetary policy.

Brian Whary can be reached at Brian.Whary@dtn.com

(BE)