NYMEX crude flat after API data reported, market looks ahead to EIA

Crude oil prices were flat in Asia on Wednesday after U.S. industry data showed a draw in gasoline and crude supplies last week.

The American Petroleum Institute reported U.S. gasoline and crude oil inventories both fell 2.9 million barrels last week, Reuters said.

More closely watched figures come Wednesday from the the U.S. Energy Information Administration (EIA), which said last week that crude inventories fell for the sixth consecutive week to 470.6 million, its highest level at this time of the year in at least 80 years.

The EIA's report on Wednesday could show that crude stockpiles for the week ending on June 12 fell by 1.8 million barrels.

On the New York Mercantile Exchange, WTI crude for August delivery rose 0.01% to $60.45 a barrel.

Overnight, crude futures were mixed amid a stronger dollar and concerns related to Tropical Storm Bill.
On the Intercontinental Exchange (ICE), Brent crude for August delivery fell 0.24 cents or 0.37% to $63.71 a barrel on Tuesday. Brent futures wavered between 63.44 and 64.40 on a choppy day of trading. Meanwhile, the spread between the international and U.S. domestic benchmarks of crude stood at $3.25, below Monday's level of 3.95.

U.S. stockpiles typically fall at this time of year as refinery capacity increases ahead of the busy summer driving season. Last week, U.S. refineries surged to 94.6% of total capacity, its highest level in weeks. The significant inventory draws, though, are seen as bullish for crude, which experienced historic levels of oversupply throughout the winter.

In addition, on Friday oil services firm Baker Hughes (NYSE:NYSE:BHI) said U.S. oil rigs fell by seven last week to 635, marking the 27th consecutive week of weekly declines. The count is down markedly from its level last fall when it peaked above 1,600, as drillers continue a push to take inefficient rigs offline.

In a monthly report, the U.S. Department of Commerce said the number of building permits for future home construction surged nearly 12% to an eight-year high at 1.28 million units. Although monthly housing starts dipped 11.1% to 1.04 million units, the Commerce Department upwardly revised an already robust figure from April to 1.17 million units.

Dollar-denominated commodities such as crude become more expensive for foreign purchasers when the dollar appreciates.

Investors await potential market-moving comments from Janet Yellen on Wednesday, following the completion of the Federal Open Market Committee's two-day June meeting.
Although the Fed has not ruled out a June interest rate hike, it is more likely that the FOMC will wait until its September meeting before it raises its benchmark Fed Funds Rate for the first time in nearly a decade