Investing.com - Crude oil futures edged higher during U.S. morning hours on Tuesday, as traders continued to monitor tropical storm activity in the Gulf of Mexico, amid concerns over a disruption to supplies from the region.
On the New York Mercantile Exchange, light sweet crude futures for delivery in October traded at USD96.06 a barrel during U.S. morning trade, gaining 0.6%.
Earlier in the day, prices rose by as much as 1% to trade at a session high of USD96.53 a barrel. Prices hit USD98.28 a barrel on August 23, the highest since May 4.
The U.S. National Hurricane Center said earlier in the day that Tropical Storm Isaac was “on the verge” of becoming a Category 1 hurricane as it moved through the Gulf of Mexico toward the southern U.S. states.
"Isaac is likely to become a hurricane later today," the hurricane center said in its 5 am EDT advisory. "Additional strengthening is forecast until the center moves inland."
The NHC expected Isaac to make landfall in the area between Florida and Louisiana.
The storm halted about 78% of oil output in the Gulf and forced evacuations from 346 production platforms and 41 rigs, the Bureau of Safety and Environmental Enforcement said Monday.
Energy traders track tropical storm activity in the event it disrupts production in the Gulf of Mexico, which is home to 23% of U.S. oil production.
But gains were limited by worries that hurricane damage could prompt refiners to cut crude oil purchases in coming weeks. The region accounts for an estimated 44% of U.S. refining capacity.
Oil traders were looking ahead to fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of oil demand in the world’s largest oil 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 1.8 million barrels.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
Market players also looked ahead to a speech by Federal Reserve chairman Ben Bernanke at an annual symposium in Jackson Hole, Wyoming at the end of the week, amid ongoing speculation over how close the U.S. central bank is to implementing more stimulus measures.
He has used the event the previous two years to flag the Fed's intention on more easing.
Growing expectations that the European Central Bank will implement policy measures to help stabilize the euro zone's sovereign debt markets at its next policy meeting in early September further supported sentiment.
ECB President Mario Draghi cancelled plans to attend the Federal Reserve’s annual summit in Jackson Hole, Wyoming, later this week due to a “heavy workload”.
Oil markets have been bullish lately, with New York-traded crude prices up approximately 20% since touching a low of USD77.27 a barrel on June 28.
Prices have been well-supported amid growing expectations that central banks around the world will soon announce fresh stimulus measures to help spur weak global growth.
Renewed fears over escalating violence in Syria and lingering tensions between Iran and the West have also been supporting prices in recent weeks.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for October delivery rose 0.25% to trade at USD112.53 a barrel, with the spread between the Brent and crude contracts standing at USD16.47 a barrel.
London-traded Brent prices touched USD116.18 a barrel on August 23, the highest since May 4.
Brent prices came under pressure Monday amid speculation the International Energy Agency was likely to tap strategic oil reserves as soon as September.
Futures have been well-supported in recent weeks, rallying nearly 22% from the lows touched in June, amid growing concerns over tightening supplies from the North Sea region and following the launch of Western-led sanctions targeting Iranian oil exports on July 1.
On the New York Mercantile Exchange, light sweet crude futures for delivery in October traded at USD96.06 a barrel during U.S. morning trade, gaining 0.6%.
Earlier in the day, prices rose by as much as 1% to trade at a session high of USD96.53 a barrel. Prices hit USD98.28 a barrel on August 23, the highest since May 4.
The U.S. National Hurricane Center said earlier in the day that Tropical Storm Isaac was “on the verge” of becoming a Category 1 hurricane as it moved through the Gulf of Mexico toward the southern U.S. states.
"Isaac is likely to become a hurricane later today," the hurricane center said in its 5 am EDT advisory. "Additional strengthening is forecast until the center moves inland."
The NHC expected Isaac to make landfall in the area between Florida and Louisiana.
The storm halted about 78% of oil output in the Gulf and forced evacuations from 346 production platforms and 41 rigs, the Bureau of Safety and Environmental Enforcement said Monday.
Energy traders track tropical storm activity in the event it disrupts production in the Gulf of Mexico, which is home to 23% of U.S. oil production.
But gains were limited by worries that hurricane damage could prompt refiners to cut crude oil purchases in coming weeks. The region accounts for an estimated 44% of U.S. refining capacity.
Oil traders were looking ahead to fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of oil demand in the world’s largest oil 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 1.8 million barrels.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
Market players also looked ahead to a speech by Federal Reserve chairman Ben Bernanke at an annual symposium in Jackson Hole, Wyoming at the end of the week, amid ongoing speculation over how close the U.S. central bank is to implementing more stimulus measures.
He has used the event the previous two years to flag the Fed's intention on more easing.
Growing expectations that the European Central Bank will implement policy measures to help stabilize the euro zone's sovereign debt markets at its next policy meeting in early September further supported sentiment.
ECB President Mario Draghi cancelled plans to attend the Federal Reserve’s annual summit in Jackson Hole, Wyoming, later this week due to a “heavy workload”.
Oil markets have been bullish lately, with New York-traded crude prices up approximately 20% since touching a low of USD77.27 a barrel on June 28.
Prices have been well-supported amid growing expectations that central banks around the world will soon announce fresh stimulus measures to help spur weak global growth.
Renewed fears over escalating violence in Syria and lingering tensions between Iran and the West have also been supporting prices in recent weeks.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for October delivery rose 0.25% to trade at USD112.53 a barrel, with the spread between the Brent and crude contracts standing at USD16.47 a barrel.
London-traded Brent prices touched USD116.18 a barrel on August 23, the highest since May 4.
Brent prices came under pressure Monday amid speculation the International Energy Agency was likely to tap strategic oil reserves as soon as September.
Futures have been well-supported in recent weeks, rallying nearly 22% from the lows touched in June, amid growing concerns over tightening supplies from the North Sea region and following the launch of Western-led sanctions targeting Iranian oil exports on July 1.