Crude Oil Edges Higher

Data from the Energy Information Administration showed late Wednesday that U.S. crude oil stockpiles declined by close to 13.00% from their March peak to 466.50 million barrels last week. However, total production rose by 79,000 barrels a day to 9.502 million barrels to record the highest output level since the middle of July 2015.

Oil analysts reckon the surging U.S. output is eroding efforts by the Organization of the Petroleum Exporting Countries to curb production and tighten the market. Brent crude futures for October delivery were last trading around $50.40 a barrel. Strong support exists around the $50-zone, while any move higher is likely to face resistance around $51.50 a barrel. Unless fresh catalysts emerge, the market could remain range-bound within the price band.

The jobless rate in the U.K. fell to its lowest level in more than 40 years in June, while wage growth topped expectations in an impressive labour market report that helped lift the pound against the U.S. dollar.  The Office for National Statistics said Wednesday that the U.K. unemployment rate fell to 4.40% in the three months to June, from 4.50% in the prior three months, marking its lowest level since the spring of 1975.

Excluding bonus payments, wages grew at an annualized pace of 2.10%, above the 2.00% growth rate recorded in the previous three-month period. Inflation has marginally eased since hitting a four year high of 2.90% in May, but prices continue to rise faster than wages, squeezing household spending. The sterling jumped close to half a cent against the U.S. dollar following the release of the jobs report. The pair was last trading around the 1.29050-mark.