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Crude oil settles up in U.S. ahead of API figures

Published 01/24/2017, 03:21 PM
Updated 01/24/2017, 03:23 PM
© Reuters.  Crude settles higher in U.S.
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Investing.com - Crude oil futures settled up in the U.S. on Tuesday with estimates on U.S. inventories ahead from the American Petroleum Institute due later that are expected to point to a build at the end of last week.

Global benchmark Brent crude rose 0.38% on London's Intercontinental Exchange to $55.44 a barrel, while U.S. crude on the New York Mercantile Exchange gained 0.82% to $53.18 a barrel.

The API figures are due 4:30 p.m. EST, while the Energy Information Administration (EIA) report is due at 10:30 a.m. EST on Wednesday. The official EIA figures are expected to show a build of about 2.8 million barrels.

Crude prices have held gains this week on widespread agreement a coordinated pact between OPEC and non-OPEC nations to trim 1.8 million barrels-per-day (bpd) from global output is working as well as dips in the dollar index to seven-week lows that benefit buyers in currencies other than greenbacks. Futures have been trading in a narrow range around the low $50s over the past month as sentiment in oil markets has been torn between expectations of a rebound in U.S. shale production and hopes that oversupply may be curbed by output cuts announced by major global producers.

Still, concerns over the global trade regime weigh on the crude markets for demand prospects after President Donald Trump addressed U.S. manufacturing executives on Monday and repeated a promise to impose a border tax on firms that import products into the United States after moving American factories overseas.

Trump also said Sunday he would start talks with Mexico and Canada to renegotiate the North American Free Trade Agreement (NAFTA).

Natural gas for February delivery on the New York Mercantile Exchange rose 0.86% to $3.285 per million British thermal unit.

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