LONDON (SHARECAST) - Crude oil futures settled the day not much changed from how they started as investors looked to a bigger-than-expected increase in US crude supplies as well as a brighter demand outlook.
Crude for November delivery settled up 3 cents at $92.12 a barrel on the New York Mercantile Exchange after trading at a high of $92.85 per barrel earlier in the session.
Oil prices turned lower after the US Energy Information Administration’s supply report showed that crude supplies rose by 2.9m barrels. Most analysts had expected a 1.5m barrel increase.
The EIA also said gasoline supplies increased 1.7m barrels last week, confounding forecasts of a 1.5m decline. Meanwhile distillates, which include heating oil, dropped 2.2m barrels, more than the 1.5m barrel decline expected.
Otherwise recent better than expected data from China, the US and Europe buoyed optimism about the global demand outlook. On Tuesday Moody’s decision to keep Spain’s sovereign rating out of junk status soothed fears about the Eurozone.
On the ICE Futures exchange in London Brent crude fell 78 cents to settle at $113.22 per barrel.
Bullion closed the day higher as increased optimism about the US and Eurozone economies sent the safe haven dollar lower.
Gold for December delivery advanced $6.70 to settle at $1,753 an ounce. While the yellow metal is also a safe haven physical demand for gold is expected to remain high in the short term.
Sentiment was boosted by the latest US home construction report, which surged in September.
Among other precious metals January platinum added $25.30 to $1,670.50 an ounce while December palladium increased $14.45 to $653.40 an ounce.