Investing.com - Oil prices shot up in U .S. trading on Tuesday amid reports that global oil cartel OPEC may trim output, while talk of fresh fighting in Libya also boosted prices.
In the New York Mercantile Exchange, West Texas Intermediate crude oil for delivery in November traded up 1.78% at $93.63 a barrel during U.S. trading. New York-traded oil futures hit a session low of $91.53 a barrel and a high of $94.09 a barrel.
The November contract settled up 0.68% at $91.99 a barrel on Monday.
Nymex oil futures were likely to find support at $89.76 a barrel, Monday's low, and resistance at $95.91 a barrel, the high from Sept. 2.
Oil prices have slumped in recent weeks amid concerns that supply far exceed demand in the global economy.
OPEC Secretary General Abdallah El-Badri reportedly said earlier the oil bloc may trim output to boost prices, which sparked a rally in energy markets on talk total production could fall to 29.5 million barrels per day from 30 million when the group meets in November.
Reports that Libya's El Sharara oil field saw output reduced after rockets hit an area near a refinery fueled the rally as well by stoking supply-disruption concerns.
Oil traders awaited the release of fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of 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 1.8 million barrels in the week ended September 12.
Separately, on the ICE Futures Exchange in London, Brent oil futures for November delivery were up 1.12% at US$98.98 a barrel, while the spread between Brent and U.S. crude contracts stood at US$4.89 a barrel.