Crude Oil dips in Asia following solid U.S. showing

             Crude Oil futures traded lower during Thursday’s Asian session on some profit-taking following a stellar performance during Wednesday’s U.S. session that saw crude soar on news of a potential drop in supply. Energy company TransCanada revealed that it would not be able to finish its work on a part of the Keystone pipeline this October. 

On the New York Mercantile Exchange, light, sweet crude futures for November delivery fell 0.34% to USD103.75 per barrel in Asian trading Thursday. The November contract settle higher by 2.02% at USD104.10 per barrel on Wednesday. 

The southern leg of the Keystone pipeline might not see completion, as TransCanada has announced. This leg was supposed to connect Oklahoma to the refineries along the Gulf Coast, enabling an increase in oil supply. 

The crude oil inventories release showed an increase of 5.5 million barrels for the week ending September 27. This was higher than the consensus of a 2.3 million increase in the number of barrels, reflecting a downturn in consumption. The total number of crude oil inventories in the US was at 363.7 million barrels that week. 

In US economic news, the government shutdown carried on for its second day in a row as President Obama refused to budge until a good budget deal is struck. 

Meanwhile, US jobs figures reported by the ADP came in weaker than expected, reflecting another downturn in hiring for September. The August figure was revised lower from 176,000 to 159,000 while the September reading came in at 166,000, lower than the 177,000 estimate. 

The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories rose by 5.5 million barrels in the week ended Sept. 27, missing market expectations for an increase of 2.3 million barrels. 

Total U.S. crude oil inventories stood at 363.7 million barrels as of last week. The report also showed that total motor gasoline inventories increased by 3.5 million barrels, defying expectations for a decline of 640,000 barrels. 

Elsewhere, Brent crude oil futures for November delivery fell 0.12% to USD108.95 per barrel on the ICE Futures Exchange. - investing.com