Oil prices gained on Tuesday boosted by hopes of stronger U.S. oil demand, and as the European Union mulls further sanctions against Russia. Fears that conflicts and rising tensions in the Ukraine and the Middle East could disrupt supplies sent oil prices higher since last week.
- On the New York Mercantile Exchange, Crude Oil added 0.59% to trade at $ 105.21 a barrel
- On the ICE Futures Exchange in London, Brent Oil was at $ 108.02 a barrel, up by 0.32%
The EIA’s weekly inventory survey is due on Wednesday, while the American Petroleum Institute, will publish its weekly data later Tuesday, markets expect U.S. stockpiles to fall further, supporting oil prices.
Also on data front, Investors will also be watching monthly U.S. inflation data followed by home sales later in the day.
In other NYMEX trading:
- NYMEX Gasoline gained 0.57% to trade at $ 290.78
- NYMEX Heating Oil added 0.32% to trade at $ 286.80
- NYMEX Natural Gas fell 0.13% to $ 3.844
In other news, the European Union (EU) foreign ministers are expected to approve further sanctions against a range of Russian later Tuesday in response to the suspected downing of a Malaysia Airlines jetliner by Moscow-backed rebels in eastern Ukraine.
Last week, The United States announced further sanctions on Russia, including against Russia’s largest oil company, over Russia’s support of rebels in Ukraine.
The news was shortly followed by the shooting down of a Malaysian Airlines passenger plane in eastern Ukraine Thursday. The U.S. leveled its most-explicit allegations yet of Russia`s involvement in the downing of Malaysia plane.