U.S. crude oil price fell on Wednesday as U.S. crude inventories increased sharply last week, but better-than-expected economic data limited the loss.
U.S. crude oil price turned negative after U.S. Energy Information Administration reported U.S. crude stocks added largely 5.3 million barrels in the week ended Aug. 26 as import rose while demand from refineries dropped. The build was far beyond a forecast of 400,000-barrel rise.
But the report also showed that the gasoline inventories fell 2. 8 million barrels last week, which limited crude prices loss.
And the Commerce Department said factory orders saw improvements in July. New orders increased 2.4 percent, much better than June’s revised 0.4 decrease, beating estimates of 1.8 percent increase. Besides, the Chicago PMI, a manufacturing index for the U.S. Midwest, came in better than expected.
The payrolls processor ADP said on Wednesday that the U.S. private sector added 91,000 jobs in August. Although it missed the expectation, the figure still offered lift to the markets.