Investing.com – WTI crude oil prices settled lower for the second day in row as traders braced for data expected to show U.S. crude stockpiles resumed their expansion amid an ongoing ramp up in domestic output.
On the New York Mercantile Exchange crude futures for May delivery fell 0.46% to settle at $65.25 a barrel, while on London's Intercontinental Exchange, Brent fell 0.23% to trade at $69.36 a barrel.
Crude oil prices reversed intraday gains as traders turned attention to a pair of upcoming reports - from the American Petroleum Institute (API)due later Tuesday, and the Energy Information Administration(EIA)due Wednesday – expected to show crude supplies rose last week.
Some analysts have suggested that crude inventory draws are likely to decline over the near-term as the slowdown in refinery activity could weigh on crude demand.
“Refinery maintenance is likely to continue through early March and summer demand is not likely to pick up until mid-April which should greatly reduce inventory draws over the next few weeks and might keep oil flattish short-term,” National Alliance said Monday.
Crude oil prices had spiked intraday before retreating after a Platts story suggested Iraqi exports could fall by over 300,000 barrels per day in April as maintenance on its single point moorings system is slated to get underway.
Sentiment on oil prices has remained supported as traders continued to bet that the U.S. could walk away from the Iran nuclear deal, disrupting global supplies, while supporting a continued rise in oil prices.
The threat of the U.S. pulling out of the Iran nuclear deal has increased following president Donald Trump’s decision to promote John Bolton to National Security Advisor. Bolton is widely believed to hold hawkish views on critical issues like the Iranian nuclear deal.