Crude oil futures were losing value on Wednesday and are likely to be further impacted in the aftermath of the central bank of the globe's largest consumer of oil releasing minutes of its meeting from last month, according to Bloomberg.
West Texas Intermediate crude oil is poised to increase through the Seaway oil pipeline, according to owners Enterprise Products Partners. The volume will average roughly 295,000 barrels per day from now through May as compared to 180,000 barrels per day that passed through during the month of January.
Supplies of the energy commodity likely increased for a fifth consecutive week, according to economists surveyed by the news service. The U.S. Department of Energy is set to release data on Thursday.
One analyst said anticipations are high regarding the internal workings from January of the policy-making arm of the U.S. Federal Reserve, the Federal Open Market Committee.
"We expect subdued, macro-driven action with some attention on the January Federal Open Markets Committee tonight," analyst Andrey Kryuchenkov with VTB Capital in London told the news source on Wednesday.
At 10:49 a.m. on Wednesday, West Texas Intermediate crude oil futures fell 0.92 percent, an 89-cent loss to $95.81 per barrel. Brent crude oil futures dropped 0.68 percent, an 80-cent loss to $116.75 per barrel.
Anticipation rises for FOMC minutes
The U.S. Federal Reserve is set to release the minutes of the late January meeting on Wednesday afternoon.
The prospect is raising hopes about indications as to when the central bank will begin slowing down with its stimulus measures that aim to spur the globe's largest economy.
The meetings were on January 29 and 30 and the Fed said after the meeting adjourned that it is moving forward with the purchase of roughly $85 billion of securities from the government and mortgages.
The most recent minutes prior to the late January rendition were from December 11 and 12 and noted discussion as to when bond purchases would end. The focus was on the middle and the end of 2013.
U.S. housing market key to energy commodity
The Wall Street Journal reports the U.S. Commerce Department indicated losses of 8.5 percent for new residential construction during the month of January.
New building permits increased 1.8 percent to notch their top level since 2008. That metric gauges prospects for future construction.
As the housing sector of the U.S. recovers, the data about economic growth sheds light on fuel demand.
Saudi supply to surge?
Reuters reports supplies of the energy commodity from the globe's largest shipper are poised to grow during the second quarter of the year.
Saudi Arabian increases are set to benefit increased demand from China as the Asian nation works on strengthening its economy. The country is the globe's second-largest consumer of oil.
How much Saudi Arabia's oil supply will grow from April through June was not disclosed.
That development "is bearish because Saudi Arabia is raising crude output during a lower demand season even though demand is picking up," commodity sales manager Yusuke Seta with Newedge Japan told Reuters.
The oil-rich Middle Eastern nation reduced supplies by 700,000 barrels per day during the final two months of last year.
Seaway throughput to develop
The Seaway pipeline, which runs from Oklahoma to Texas, is set to operate at a daily capacity of less than 400,000 barrels, according to Reuters.
Operators had aimed to release some of the glut of the energy commodity at the Oklahoma delivery point for WTI.
"I just don't know why it's so strong. It seems strange to me, with all these problems at Seaway," risk manager Tony Nunan with Mitsubishi Corporation told Reuters.
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