Oil prices trading steady, awaits US crude inventory data

Oil prices are hovering under the $80 mark in light trading in Asia Wednesday ahead of the weekly US inventory data and markets will be looking for confirmation of overnight data from the API that reported a surprise huge draw in distillate stockpiles, but with a higher than expected build in crude stocks. The US Department of Energy’s weekly statistics are due to be released at 1530 GMT today.

On the NYMEX, Light crude oil futures for delivery in April were 2 cents higher at $79.70 a barrel at 0624 GMT, while in London, Brent crude oil futures fell 13 cents to $78.05 a barrel on the ICE Futures Exchange.

In the backdrop of relatively small draws in the “previous three reports, yesterday’s much larger than normal draw is not unreasonable,” said Stephen Schork, editor of the Schork Report.

“Macroeconomic concerns have kept prices below $80 as recent economic data have been mixed,” Goldman Sachs said in a report.

“Without a stronger US economic pickup, it is unlikely that the developed market is going to see demand growth for crude oil,” S&P analyst Lorraine Tan said.

“As consumers in the US continue to stare down job loss and foreclosure, businesses still have a hard time obtaining credit to meet any expansion in crude oil demand, whenever it comes,” said Mike Fitzpatrick at MF Global.

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