Crude oil prices are lower Wednesday morning, ahead of official crude inventory data.
The U.S. Energy Information Administration will come out with its oil status report for the week ended December 19th, at 10:30 am ET.
According to data released by the American Petroleum Institute late Tuesday, U.S. crude stockpiles were up 5.4 million barrels last week.
Notwithstanding some upbeat economic data from the U.S., worries about demand growth and concerns over excess supply continue to hurt oil.
Recently, Saudi Oil Minister Ali Al-Naimi said OPEC will not reduce production even if non-OPEC producers decide to cut output. He even hinted that his country may increase production if any new buyers come into the picture.
Crude oil futures for February delivery are down $1.40 or 2.44 percent at $55.72 a barrel.
On Tuesday, crude oil futures ended up $1.86 or 3.4 percent at $57.12 a barrel.
Oil rallied on the back of a report from the Commerce Department that showed U.S. economy to have expanded much more than previously estimated in the third quarter.
Meanwhile, U.S. personal income rose less than expected in November, but personal spending increased more than expected, another report from the Commerce Department report showed Tuesday.
Oil was also supported by comments from some Arab members of the Organization of the Petroleum Exporting Countries that oil prices would rebound to $70 to $80 a barrel next year.
Meanwhile, natural gas for January is down $0.022 or 0.71 percent at $3.149 per million btu.
The U.S. Labor Department is scheduled to come out with its jobless claims report for the week ended December 20, at 8:30 am ET.
The material has been provided by InstaForex Company – www.instaforex.com