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U.S. oil futures hit 3-week high ahead of weekly supply data

Published 09/30/2014, 05:22 AM
U.S. oil rises to 3-week high ahead of weekly supply data

Investing.com - U.S. oil futures edged higher on Tuesday, as market players 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.

On the New York Mercantile Exchange, crude oil for delivery in November traded at $94.86 a barrel during European morning hours, up 28 cents from a closing price of $94.57 on Monday.

Nymex prices hit a session high of $94.90 earlier, the most since September 4. Futures were likely to find support at $92.74 a barrel, the low from September 29 and resistance at $95.39 a barrel, the high from September 4.

The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles rose by 0.3 million barrels in the week ended September 26.

U.S. oil futures are on track for a 10.1% drop in the three months to September amid speculation global supplies remain ample while demand slows.

Meanwhile, the dollar index has gained nearly 7% this quarter, the most since the 2008 global financial crisis, amid speculation a strengthening economic recovery in the U.S. would prompt the Federal Reserve to hike rates sooner and faster than previously expected.

Oil prices typically weaken when the U.S. currency strengthens as the dollar-priced commodity becomes more expensive for holders of other currencies.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for November delivery tacked on 40 cents to hit $97.60 a barrel during European morning trade.

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London-traded Brent prices are 13.2% lower since the end of June as global supplies were seen as ample despite ongoing violence in North Africa and the Middle East.

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