Oil prices decline on ample supplies
2014-03-06 11:07:25
Oil prices continued to drop Wednesday as US crude supplies increased for a seventh week.
US crude inventories rose by 1.43 million barrels to 363.8 million last week, according to Energy Information Administration.
Crude supplies were projected to climb 1.3 million barrels. The higher crude is bearish to the market.
The discouraging US economic data released Wednesday also weighed on crude prices.
US private sector employment added 139,000 jobs in February, according to ADP National Employment Report released Wednesday, falling short of economists' forecast.
After the private jobs report, investors are looking ahead to the closely-watched nonfarm payrolls report for February due out Friday by the Labor Department.
Moreover, US economic activity in the non-manufacturing sector increased in February for the 49th consecutive month, with the index registering 51.6, lower than January's reading of 54, the Institute for Supply Management said Wednesday. The number also missed market consensus.
Reports from most of the 12 Federal Reserve Districts indicated that economic conditions continued to expand from January to early February, according to the Federal Reserve's Beige Book. The book confirmed that abnormally cold weather has imposed a negative impact on the economy.
Light, sweet crude for April delivery moved down 1.88 dollars to settle at 101.45 US dollars a barrel on the New York Mercantile Exchange, while Brent crude for April delivery lost 1. 54 dollars to close at 107.76 dollars a barrel.