Investing.com - Crude oil futures traded higher during U.S. afternoon trade on Tuesday, despite the Federal Reserve Chairman Ben Bernanke failing to signal a fresh round of stimulus to boost the U.S. economy.
On the New York Mercantile Exchange, light sweet crude futures for delivery in August traded at USD89.26 a barrel during U.S. afternoon trade, moving higher by 0.52%.
The August contract is due to expire on Friday, July 20.
In his semi-annual testimony to the Senate Banking Committee, Fed Chair Ben Bernanke reiterated that the central bank is prepared to act to boost growth in the U.S. economy, but he declined to specify steps.
Bernanke added that the reduction in the unemployment rate in coming months seems likely to be "frustratingly slow", while saying that the economic recovery remains “fragile”.
Oil traders were now looking ahead to 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 0.5 million barrels.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
Oil prices were higher earlier in the session as hopes for additional stimulus measures from China mounted after Chinese Premier Wen Jiabao said over the weekend that policy makers were likely to introduce measures to boost growth in the second half of the year
The comments followed government data released last week showing China’s second quarter economic growth slowed to a three-year low of 7.6%, compared to growth of 8.1% in the first quarter.
The Asian nation is the world’s second largest oil consumer behind the U.S. and has been the engine of strengthening demand.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for September delivery added 0.3% to trade at USD103.69 a barrel, with the spread between the Brent and crude contracts standing at USD14.98.
London-traded Brent prices rose to as high as USD104.74 a barrel earlier in the day, the highest since May 30.
A fresh warning by Iran to block the Strait of Hormuz if its security is threatened supported Brent prices.
The U.S. Treasury and State Departments said late last week that it will target a number of banks and shipping companies it believes are being used to evade international sanctions on Iranian oil exports.
A European Union embargo on purchases of Iranian oil came into full effect on July 1.
Brent prices have been well-supported in recent sessions amid growing concerns over tightening supplies from Norway, outages in the North Sea region and following the launch of Western-led sanctions targeting Iranian oil exports on July 1.
On the New York Mercantile Exchange, light sweet crude futures for delivery in August traded at USD89.26 a barrel during U.S. afternoon trade, moving higher by 0.52%.
The August contract is due to expire on Friday, July 20.
In his semi-annual testimony to the Senate Banking Committee, Fed Chair Ben Bernanke reiterated that the central bank is prepared to act to boost growth in the U.S. economy, but he declined to specify steps.
Bernanke added that the reduction in the unemployment rate in coming months seems likely to be "frustratingly slow", while saying that the economic recovery remains “fragile”.
Oil traders were now looking ahead to 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 0.5 million barrels.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
Oil prices were higher earlier in the session as hopes for additional stimulus measures from China mounted after Chinese Premier Wen Jiabao said over the weekend that policy makers were likely to introduce measures to boost growth in the second half of the year
The comments followed government data released last week showing China’s second quarter economic growth slowed to a three-year low of 7.6%, compared to growth of 8.1% in the first quarter.
The Asian nation is the world’s second largest oil consumer behind the U.S. and has been the engine of strengthening demand.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for September delivery added 0.3% to trade at USD103.69 a barrel, with the spread between the Brent and crude contracts standing at USD14.98.
London-traded Brent prices rose to as high as USD104.74 a barrel earlier in the day, the highest since May 30.
A fresh warning by Iran to block the Strait of Hormuz if its security is threatened supported Brent prices.
The U.S. Treasury and State Departments said late last week that it will target a number of banks and shipping companies it believes are being used to evade international sanctions on Iranian oil exports.
A European Union embargo on purchases of Iranian oil came into full effect on July 1.
Brent prices have been well-supported in recent sessions amid growing concerns over tightening supplies from Norway, outages in the North Sea region and following the launch of Western-led sanctions targeting Iranian oil exports on July 1.