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U.S. oil futures edge higher ahead of supply data

Published 12/10/2013, 04:01 AM
U.S. oil futures edge higher ahead of supply data
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Investing.com - U.S. oil futures edged higher on Tuesday, as market players awaited 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, West Texas Intermediate crude for delivery in January traded at USD97.78 a barrel during European morning trade, up 0.45%. New York-traded oil futures traded in a range between USD97.11 a barrel and USD97.88 a barrel.

The January contract settled 0.32% lower on Monday to end at USD97.34 a barrel.

Nymex oil futures were likely to find support at USD96.30 a barrel, the low from December 4 and resistance at USD98.51 a barrel, the high from October 29.

The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles fell by 2.7 million barrels in the week ended December 6.

Traders have been concerned over rising U.S. inventories and increased production levels in recent weeks. U.S. crude oil inventories fell by 5.6 million barrels in the previous week to 385.8 million, the first weekly decline in 11 weeks.

Elsewhere, on the ICE Futures Exchange in London, Brent oil futures for January delivery inched up 0.45% to trade at USD109.92 a barrel, while the spread between the Brent and U.S. crude contracts narrowed to USD12.14 a barrel.

London-traded Brent oil futures tumbled 2% on Monday to settle at USD109.39 a barrel after disappointing German factory data fuelled concerns over a slowdown in demand from the euro zone’s largest economy.

Prices rebounded after data released earlier showed that Chinese industrial output rose less-than-forecast in November, while retail sales topped expectations.

Industrial production in China rose 10% last month, below expectations for a 10.1% increase, while retail sales jumped 13.7%, beating estimates for a 13.3% gain.

China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.

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