TSX May Open Higher As Oil Rises on Inventory Data

TSX May Open Higher As Oil Rises on Inventory Data

Canada’s benchmark index looked set to open higher on Wednesday after oil prices returned to the positive territory, following good news from the American Petroleum Institute (API).

Action Economics said the weekly API report showed U.S. crude inventories declined by 9.2 million barrels in the week to Aug. 11, much bigger than the Reuters median forecast for a 3.1 million barrel draw. There are also reports that Libyan crude output to between 130,000 and 150,000 barrels per day, down from 280,000 barrels per day.

Meanwhile, gold and silver were under pressure, with a firmer dollar capping gains. Traders are anticipating the minutes of the Federal Open Market Committee’s monetary policy meeting and will look for hints when the bank might raise key rates again.

The TSX shed 22 points on Tuesday, with material and energy stocks as the main decliners.

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