Crude oil futures settled lower on Wednesday, snapping five days of consecutive gains, as US weekly stockpile data showed a surprise inventories increase.

Crude for October delivery settled 16 cents lower at $97.01 a barrel on the New York Mercantile Exchange.

Crude came under pressure after data from the US Energy Information Administration said crude supplies increased by 2m barrels in the week ended 7th September, confounding expectations of a 2.3m barrel decline.

The EIA also reported a 1.2m barrel decline in gasoline inventories and an unexpected increase in distillate stocks, up 1.5m barrels on the week. Analysts had pencilled in a 2.4m decline in gasoline stocks while distillates were expected to fall by 1.5m.

Traders also turned increasingly cautious as the two-day US Federal Reserve meeting got underway on Wednesday. Markets are widely anticipating the announcement of further steps to bolster the economy.

Markets also digested reports of fresh tensions in the Middle East after the US ambassador to oil rich Libya was killed in Benghazi.

On the ICE futures exchange Brent crude traded 46 cents higher at $115.23 a barrel.

Among precious metals gold ended lower, after a volatile session, as traders squared positions ahead of possible stimulus measures from the Federal Reserve.

Gold for December delivery retreated $1.20 to settle at $1,733.70 an ounce on the Comex division of the New York Mercantile Exchange.

Platinum stood out on Wednesday with gains reaching a five-month high on concern about turmoil and strikes in South African mining companies.

Platinum for October delivery climbed $42.60 to $1,649.60 an ounce.




CJ

Related share prices