Oil prices reversed yesterday’s rally on Tuesday morning amid expectations that US crude supply increased for sixth week in a row.
Sideways is dominating the energy markets this week, with WTI crude is holding back around the key level at $102 barrel, after hitting a four-month high yesterday amid expectations that inventories in Cushing, Oklahoma, fell last week and as cold weather in the US boosted demand for heating fuel, therefore traders will be paying a very close attention to the heating and gasoline numbers this week.
Meanwhile, oil futures were back under pressure before a EIA report tomorrow shows US stockpiles rose for a six week to 363.6 million barrels, according to analysts’ median forecast. As of 03:17 a.m. ET:
- WTI Crude for April delivery fell 0.65% to $102.15 a barrel
- Brent Crude fell 0.37% to $110.23 a barrel
Again, prices were quite buoyed by worries over supply following extended disruptions in Libya and other exporters. In Libya, crude output stood at 231 thousand barrel a day, according to a spokesman for National Oil Corp.
Markets will be keeping a close eye on the heating fuel numbers, and today’s API report may signal some signs of rising demand in the US.