Crude Oil Futures Slip as Inventory Grows

August 24, 2016 5:42AM CDT

Commodities futures market prices are mixed in a day with little data aside from energy inventory reports as a focus. Crude Oil futures prices initially rallied ahead of the weekly report from the U.S. Energy Information Association (EIA), and settled to lower levels in mid-morning trading.

The October contract in crude oil futures slipped 2.16 percent at 47.10 a barrel.

The EIA reported that crude oil stocks in the week of domestic crude supplies rose by 2.5 million barrels in the week ended Aug. 19, higher than the 200,000-barrel climb expected by analysts.

The information comes on the heels of Tuesday’s report from the American Petroleum Institute, which indicated that U.S. crude inventory rose by 4.46 million barrels last week, and led with a 417,000 increase in crude oil stocks in Cushing, Oklahoma.

The remainder of the economic data front on Wednesday included the Existing Home Sales report for July dropped 3.2 percent to an annual rate of 5.39 million units last month. June's sales pace was unrevised at 5.57 million units. Economists forecast sales slipping 0.4 percent to a 5.51 million-unit pace in July. Home resales were down 1.6 percent from a year ago.

On Tuesday, the commodities futures markets absorbed the New Home Sales report, which showed growth of 12.4 percent to 654,000 units last month, the highest level since October 2007, according to the U.S. Department of Commerce.

U.S. Federal Reserve Chair Janet Yellen is scheduled to speak on the U.S. economy and monetary policy Friday at 11 a.m. EST, a much-awaited speech within the commodities futures markets. Yellen’s speech comes after New York Fed President William Dudley and Fed Vice Chairman Stanley Fischer, expressed hawkish views on the future of the U.S. economy and the possibility of an interest-rate cut in September.

Thursday brings Durable Goods Orders data for July to the U.S. economic calendar, as well as Weekly Natural Gas Inventories, as well as Weekly Initial Jobless Claims. Friday’s data includes the Q2 GDP Second Estimate, the July International Trade in Goods report, and the University of Michigan Consumer Sentiment Index for the month of August. Crude Light Daily

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