NYMEX crude prices gain in early Asia as investors await Greece reforms

Investing.com - Crude oil prices nudged higher in Asia on Tuesday with U.S. supply data ahead and a market eyeing events in Greece for signs of any further currency turmoil.

On the New York Mercantile Exchange, crude oil for delivery in April rose 0.11% to $49.37 a barrel.

Later Tuesday, the American Petroleum Institute, an industry group, will give estimates of U.S. crude and refined product stocks last week. On Wednesday more closely watched data from the U.s.Department of Energy will be released.

Overnight, crude oil futures extended sharp losses from last week on Monday, as a broadly stronger dollar and lingering concerns over a glut in global supplies drove down prices.

Dollar-denominated oil futures contracts tend to fall when the dollar rises, as this makes oil more expensive for buyers in other currencies.

Industry research group Baker Hughes (NYSE:BHI) said that the number of rigs drilling for oil in the U.S. fell by just 37 last week, the smallest weekly drop this year and compared to a decline of 84 rigs in the preceding week.

The number of rigs drilling for oil in the U.S. totaled 1,019, the lowest since August 2011. The number of oil rigs has declined in 16 of the last 19 weeks since hitting an all-time high of 1,609 in mid-October.

However, government data showed that oil supplies in the U.S. rose to the highest level in at least 80 years last week, indicating that cheap prices have yet to affect output.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for April delivery slumped $1.18, or 1.95%, to trade at $59.05 a barrel, after touching a session low of $58.38 earlier on Monday.

Brent prices are up more than 11% in February as some investors bet that a bottom had been reached after a seven-month long rout. But prices are still down approximately 47% since June, when futures climbed near $116.

The spread between the Brent and the WTI crude contracts stood at $9.47 a barrel.

Oil prices have fallen sharply in recent months as the Organization of Petroleum Exporting Countries resisted calls to cut output, while the U.S. pumped at the fastest pace in more than three decades, creating a glut in global supplies.

Meanwhile, investors remained cautious as Greece was to present a list of reforms on Monday to be approved by the country’s creditors in order to secure its four-month bailout extension, which will give it more time to reach a lasting agreement with its creditors.

On Friday, the euro zone approved the extension of Greece’s €240 billion bailout, removing concerns that the country would face a liquidity crunch when its current bailout agreement expired at the end of the month.

Athens on Monday was scheduled to present a list of reforms to be approved by the country’s creditors, but delayed the process until Tuesday, Reuters reported.

Greece will present its economic reform plans to the euro zone on Tuesday, a government official said.

The official gave no reason for the delay but said euro zone finance ministers would consider Greece's plans, which include a crackdown on tax evasion and corruption, as scheduled on Tuesday afternoon.

In Brussels a euro zone official said the "content of the letter will not be a surprise" to the euro zone and therefore the Tuesday submission was not a major issue. Greece has said it was working closely with its euro zone partners in drawing up the list.