Investing.com – Crude oil futures extended gains on Tuesday, hovering close to USD90 a barrel amid speculation U.S. crude stockpiles dropped significantly last week after storms disrupted production in the Gulf of Mexico.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in October traded at USD89.81 a barrel during U.S. morning trade, jumping 1.81%.
It earlier rose as much as 1.9% to trade at USD89.89 a barrel, the highest price since September 8.
Markets were awaiting 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 stockpiles fell by 3.0 million barrels last week, while gasoline stockpiles were projected to drop by 0.5 million barrels.
61% of U.S. oil production in the Gulf of Mexico was shut-in last week after Tropical Storm Lee damaged oil facilities in the region, according to the U.S. Bureau of Ocean Energy Management.
Weakness in the U.S. dollar provided further support. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.35% to trade at 77.58, reversing an earlier gain of as much as 0.44%.
However, concerns over the global demand outlook limited gains after the International Energy Agency lowered its 2011 and 2012 forecast for global oil demand, citing reduced economic growth expectations.
In its monthly report, the IEA said that world oil demand for the remainder of 2011 was expected to total 89.3 million barrels per day, down from a previous forecast of 89.5 million barrels.
For 2012, global demand was expected to average 90.7 million barrels per day, compared to the agency’s August estimate of 91.1 million.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for November delivery fell 0.49% to trade at USD110.14 a barrel, up USD20.33 a barrel on its U.S. counterpart.
French bank Societe Generale said in a report earlier that it expected Brent prices to average USD98.30 a barrel in the fourth quarter of 2011, as Libyan oil supplies start returning to the market.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in October traded at USD89.81 a barrel during U.S. morning trade, jumping 1.81%.
It earlier rose as much as 1.9% to trade at USD89.89 a barrel, the highest price since September 8.
Markets were awaiting 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 stockpiles fell by 3.0 million barrels last week, while gasoline stockpiles were projected to drop by 0.5 million barrels.
61% of U.S. oil production in the Gulf of Mexico was shut-in last week after Tropical Storm Lee damaged oil facilities in the region, according to the U.S. Bureau of Ocean Energy Management.
Weakness in the U.S. dollar provided further support. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.35% to trade at 77.58, reversing an earlier gain of as much as 0.44%.
However, concerns over the global demand outlook limited gains after the International Energy Agency lowered its 2011 and 2012 forecast for global oil demand, citing reduced economic growth expectations.
In its monthly report, the IEA said that world oil demand for the remainder of 2011 was expected to total 89.3 million barrels per day, down from a previous forecast of 89.5 million barrels.
For 2012, global demand was expected to average 90.7 million barrels per day, compared to the agency’s August estimate of 91.1 million.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for November delivery fell 0.49% to trade at USD110.14 a barrel, up USD20.33 a barrel on its U.S. counterpart.
French bank Societe Generale said in a report earlier that it expected Brent prices to average USD98.30 a barrel in the fourth quarter of 2011, as Libyan oil supplies start returning to the market.