Investing.com - Crude oil futures declined on Tuesday, as growing concerns about rising U.S. inventories and ongoing uncertainty over the duration of the Federal Reserve’s stimulus program weighed.
On the New York Mercantile Exchange, light sweet crude futures for delivery in January traded at USD93.37 a barrel during European morning trade, down 0.35%.
New York-traded oil futures traded in a range between USD93.23 a barrel, the daily low and a session high of USD93.90 a barrel.
The January contract settled 0.86% lower on Monday to end at USD93.68 a barrel.
Oil futures were likely to find support at USD92.51 a barrel, the low from November 14 and resistance at USD95.22 a barrel, the high from November 12.
U.S. crude prices have been on a downward trend in recent weeks amid concerns the U.S. government shutdown created a drag on economic growth and eroded demand in the world’s largest oil consumer.
Total U.S. crude oil inventories stood at 388.1 million barrels as of last week, the highest since June.
The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles rose by 100,000 barrels.
Sentiment was also dampened amid ongoing uncertainty over the direction of U.S. monetary policy.
Investors looked ahead to a speech from Fed Chairman Ben Bernanke later in the day for further indications on the future course of U.S. monetary policy. The central bank is set to release the minutes of its October policy meeting on Wednesday.
The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar.
Oil prices came under additional pressure after the Organization for Economic Co-operation and Development cut its forecast for 2014 global growth to 3.6% from a previous estimate of 4%, warning that the outlook for emerging markets is deteriorating.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for January delivery fell 0.75% to trade at USD107.68 a barrel, with the spread between the Brent and crude contracts standing at USD14.31 a barrel.
Traders focused on a resumption of talks between Iran and major powers scheduled for November 20 in Geneva. Talks aimed at curbing Iran’s nuclear program and relaxing sanctions against the oil producer stalled earlier in the month.
Trade sanctions slapped on Iran due to its alleged nuclear ambitions have taken out more than one million barrels per day of oil from the global market.
On the New York Mercantile Exchange, light sweet crude futures for delivery in January traded at USD93.37 a barrel during European morning trade, down 0.35%.
New York-traded oil futures traded in a range between USD93.23 a barrel, the daily low and a session high of USD93.90 a barrel.
The January contract settled 0.86% lower on Monday to end at USD93.68 a barrel.
Oil futures were likely to find support at USD92.51 a barrel, the low from November 14 and resistance at USD95.22 a barrel, the high from November 12.
U.S. crude prices have been on a downward trend in recent weeks amid concerns the U.S. government shutdown created a drag on economic growth and eroded demand in the world’s largest oil consumer.
Total U.S. crude oil inventories stood at 388.1 million barrels as of last week, the highest since June.
The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles rose by 100,000 barrels.
Sentiment was also dampened amid ongoing uncertainty over the direction of U.S. monetary policy.
Investors looked ahead to a speech from Fed Chairman Ben Bernanke later in the day for further indications on the future course of U.S. monetary policy. The central bank is set to release the minutes of its October policy meeting on Wednesday.
The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar.
Oil prices came under additional pressure after the Organization for Economic Co-operation and Development cut its forecast for 2014 global growth to 3.6% from a previous estimate of 4%, warning that the outlook for emerging markets is deteriorating.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for January delivery fell 0.75% to trade at USD107.68 a barrel, with the spread between the Brent and crude contracts standing at USD14.31 a barrel.
Traders focused on a resumption of talks between Iran and major powers scheduled for November 20 in Geneva. Talks aimed at curbing Iran’s nuclear program and relaxing sanctions against the oil producer stalled earlier in the month.
Trade sanctions slapped on Iran due to its alleged nuclear ambitions have taken out more than one million barrels per day of oil from the global market.