Crude Oil futures were few cents higher on Tuesday, following nearly 1% drop in the previous session as traders weighed the prospects for demand in the oil producing countries.
The sentiment for oil was mixed again amid signs of weak demand from Europe and Asia, after an IEA report yesterday signaled the global demand growth forecast for the year was lowered since Last month`s report to a more modest 1 million barrels a day.
The news out of Ukraine was mixed yesterday, while Russia is once again speaking softly but there`s talk that the separatists in Eastern Ukraine may be facing a rout. Separately, Iraqi and Kurdish forces reclaimed a dam of strategic importance and as Libyan boosted crude output.
As of 02:29 am ET:
- West Texas Intermediate for September delivery rose 0.65% to $97.04 a barrel in the New York Mercantile Exchange
- Brent Oil for September delivery rose 0.37% to $101.98 a barrel on the ICE Exchange in London
The IEA lowered its 2014 demand growth forecast on Monday due to lower-than-expected second-quarter deliveries and downgraded macroeconomic outlook from the International Monetary Fund.
Demand growth is expected pick up in 2015 to 1.3 million barrels a day as the global economy improves, IEA said.
Oil prices were kindly supported by news of a rocket strike on a refugee convoy of buses and cars in eastern Ukraine, where fifteen bodies have so far been recovered from the site of the Monday`s strike, according to Reuters. The Kiev government blamed the attack on the rebels, but they denied responsibility.
Investors will be closely watching the weekly inventory reports united states, expected to show a drop in nationwide crude oil and refined petroleum products stockpiles during the week ended August 15.