Oil Down Slightly After API Data

Oil futures traded slightly lower in the early part of Wednesday’s Asian session following the release of weekly inventories data from the American Petroleum Institute.

On the New York Mercantile Exchange, light, sweet crude futures for September delivery fell 0.18% to USD105.50 per barrel in Asian trading Wednesday.

Oil traded modestly higher during Tuesday’s U.S. session amid some decent U.S. data points. In U.S. economic news out Tuesday, the National Association of Home Builders/Wells Fargo housing-market index rose to 57 in July from 51 in June. The July reading is the highest since January 2006.

The Labor Department said U.S. consumer price inflation rose 0.5% in June following a 0.1% rise in May. Economists expected a 0.3% June increase. Core CPI increased at annualized rate of 1.6% last month, in line with forecasts and slowing from 1.7% in May.

Core prices are viewed by the Federal Reserve as a better gauge of longer-term inflationary pressure because they exclude the volatile food and energy categories. The Fed is aiming to keep inflation around 2% or less. Industrial production rose 0.3% in June, the biggest increase in four months. The U.S. is the world’s largest oil consumer.

Earlier Wednesday, the American Petroleum Institute said U.S. oil inventories fell 2.6 million barrels for the week ended July 12. Analysts expected a decline of 2.5 million barrels. Gasoline stockpiles rose 2.6 million barrels while distillate stocks jumped 3.8 million barrels.

The more widely followed inventories report from the U.S. Energy Information Administration is due out later Wednesday.

Elsewhere, Brent futures for September delivery inched up 0.08% to USD107.97 per barrel on the ICE Futures Exchange.

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