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Crude oil steady near 9-month high ahead of supply data, Fed

Published 06/18/2013, 03:56 AM
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Investing.com - Crude oil futures held steady near a nine-month high during European morning hours on Tuesday, as investors remain focused on the Federal Open Market Committee policy decision Wednesday.

Investors also awaited the release of key U.S. weekly supply data to gauge the strength of oil demand from the world’s largest consumer.

On the New York Mercantile Exchange, light sweet crude futures for delivery in August traded at USD97.88 a barrel during European morning trade, down 0.15% on the day.

New York-traded oil prices held in a range between USD97.73 a barrel, the daily low and a session high of USD98.28 a barrel.

Nymex oil prices rallied to hit USD98.94 a barrel on Monday, the strongest level since September 17, as mounting concerns over a disruption to supplies from the Middle East boosted prices.

But gains were limited as market players remained cautious amid speculation over whether the Fed will begin to scale back its easing program after Chairman Ben Bernanke said last month the bank could begin to taper asset purchases if the economy continued to improve.

Attention will focus on Bernanke’s press conference on Wednesday, which investors are hoping will provide further clues on how long the central bank will maintain its USD85-billion-a-month in bond purchases.

Oil traders also looked ahead to the release of 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 0.6 million barrels.

The U.S. is the world’s biggest oil consuming country, responsible for almost 22% of global oil demand.

Elsewhere, on the ICE Futures Exchange, Brent oil futures for August delivery were little changed to trade at USD105.49 a barrel, with the spread between the Brent and crude contracts standing at USD7.61 a barrel.

London-traded Brent prices hit a ten-week high of USD106.63 a barrel on Monday.

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