Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

U.S. oil futures rally to 1-week high ahead of API supply report, Fed

Published 09/16/2014, 10:39 AM
Updated 09/16/2014, 10:39 AM
Crude oil futures move higher ahead of U.S. supply report, FOMC meeting

Crude oil futures move higher ahead of U.S. supply report, FOMC meeting

Investing.com - U.S. oil futures rallied to a one-week high on Tuesday, as investors awaited key weekly supply data to gauge the strength of oil demand from the world’s largest consumer.

On the New York Mercantile Exchange, crude oil for delivery in November rose to a session high of $92.91 a barrel, the most since September 9. Prices were last trading at $92.71 during U.S. morning hours, up 72 cents, or 0.79%.

Futures were likely to find support at $89.76 a barrel, the low from September 15 and resistance at $93.61 a barrel, the high from September 7.

A day earlier, U.S. oil prices tacked on 62 cents, or 0.68%, to end at $91.99 a barrel.

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.

Investors also shifted their focus to the Federal Reserve's upcoming policy meeting, due to begin later Tuesday, amid speculation the U.S. central bank could adopt more hawkish language.

The dollar remained well bid as the Fed was expected to cut its asset purchase program by another $10 billion, which would keep it on track for winding up the program in October, and to start raising interest rates sometime in mid-2015.

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 added 94 cents, or 0.96%, to hit $98.82 a barrel during early U.S. trade on Tuesday.

London-traded Brent prices lost 8 cents, or 0.08%, on Monday to settle at $97.88 amid concerns weakening global economic growth will reduce demand for the commodity.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.