Investing.com – Crude oil futures trimmed gains on Tuesday, easing off a two-day high after the International Energy Agency warned that high crude prices could derail growth in China and India, two of the world’s top five oil consumers.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in August traded at USD94.49 a barrel during U.S. morning trade, gaining 0.75%.
It earlier rose as much as 1.36% to USD95.09 a barrel, the highest price since June 17.
IEA chief economist Fatih Birol said earlier that there was “strong potential” that this year’s surging oil prices could weigh on global economic growth and potentially lead to a similar crash experienced in the 2008 recession.
Mr. Birol warned that current prices represent a “major downside risk” for China and India’s respective economies, as they tighten monetary policies to combat surging inflation caused in part by elevated oil prices.
Crude prices remained supported as the euro gained against the U.S. dollar ahead of a key confidence vote in the Greek parliament later in the day.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.34% to trade at 75.21.
Dollar-denominated oil futures contracts tend to rise when the dollar falls, as this makes oil cheaper for holders of other currencies.
Short covering ahead of the expiration of the July contract also benefited prices. The crude July contract is due to expire at the end of trading on Thursday.
Meanwhile, markets were awaiting fresh information on U.S. stockpiles of crude and refined products.
The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show stockpiles declined by 1.6 million barrels last week.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for August delivery rose 0.14% to trade at USD111.89 a barrel, up USD17.40 on its U.S. counterpart.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in August traded at USD94.49 a barrel during U.S. morning trade, gaining 0.75%.
It earlier rose as much as 1.36% to USD95.09 a barrel, the highest price since June 17.
IEA chief economist Fatih Birol said earlier that there was “strong potential” that this year’s surging oil prices could weigh on global economic growth and potentially lead to a similar crash experienced in the 2008 recession.
Mr. Birol warned that current prices represent a “major downside risk” for China and India’s respective economies, as they tighten monetary policies to combat surging inflation caused in part by elevated oil prices.
Crude prices remained supported as the euro gained against the U.S. dollar ahead of a key confidence vote in the Greek parliament later in the day.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.34% to trade at 75.21.
Dollar-denominated oil futures contracts tend to rise when the dollar falls, as this makes oil cheaper for holders of other currencies.
Short covering ahead of the expiration of the July contract also benefited prices. The crude July contract is due to expire at the end of trading on Thursday.
Meanwhile, markets were awaiting fresh information on U.S. stockpiles of crude and refined products.
The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show stockpiles declined by 1.6 million barrels last week.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for August delivery rose 0.14% to trade at USD111.89 a barrel, up USD17.40 on its U.S. counterpart.