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WTI oil extends gains ahead of U.S. supply data

Published 07/22/2014, 03:58 AM
U.S. oil futures edge higher ahead of supply data
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Investing.com - West Texas Intermediate oil futures edged higher on Tuesday, as market players assessed demand prospects from the U.S., while awaiting new developments from Ukraine and the Middle East.

On the New York Mercantile Exchange, crude oil for delivery in September rose to a session high of $103.38 a barrel, the most since July 9, before trimming gains to last trade at $103.15 during European morning hours, up 0.28%, or 28 cents.

U.S. oil futures tacked on 0.89%, or 91 cents, on Monday to settle at $102.86. New York-traded oil futures were likely to find support at $101.48 a barrel, the low from July 21 and resistance at $103.62 a barrel, the high from July 9.

Market players awaited key U.S. weekly supply data to gauge the strength of oil demand from the world’s largest consumer.

The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles fell by 2.8 million barrels in the week ended July 18.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for September delivery inched up 0.36%, or 39 cents, to trade at $108.07 a barrel.

Sentiment recovered after pro-Russian rebel leader Aleksander Borodai handed over the black boxes of the downed Malaysian passenger plane to Malaysian experts earlier Tuesday.

The United Nations Security Council voted unanimously on Monday to approve a resolution calling for an international probe into the incident and unimpeded access to the crash site.

The U.S. initially blamed pro-Russian separatists for the act, while Russia and Ukraine accuse each other of being behind the downed passenger plane.

European Union foreign ministers are to meet later Tuesday to discuss another round of sanctions against Russia, as the country continues to violate Ukraine's sovereignty and back separatists.

Russia is one of the world's top producers and exporters of oil and gas.

Meanwhile, the United States stepped up efforts to secure a ceasefire in the Gaza strip, as fighting between Israeli security forces and Hamas militants continued. U.S. Secretary of State John Kerry and United Nations chief Ban Ki Moon arrived in Cairo for talks aimed at stopping the bloodshed.

Market participants are worried that a flare up in the conflict could draw in neighboring countries and affect oil supplies.

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