Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

U.S. oil futures reverse losses ahead of API supply report

Published 04/21/2015, 10:37 AM
Updated 04/21/2015, 10:37 AM
© Reuters.  WTI oil futures turn higher ahead of API supply data

Investing.com - West Texas Intermediate oil futures turned higher on Tuesday, as traders looked ahead to weekly data on U.S. stockpiles of crude and refined products later in the day.

On the New York Mercantile Exchange, crude oil for June delivery hit an intraday low of $57.18 a barrel, before trading at $57.94 during U.S. morning hours, up 6 cents, or 0.1%. A day earlier, Nymex oil prices tacked on 56 cents, or 0.98%, to end at $57.88.

The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles rose by 2.4 million barrels in the week ended April 17.

Total U.S. crude oil inventories stood at 483.7 million barrels as of April 10, the most in at least 80 years.

U.S. oil futures have been well-supported in recent sessions due to mounting expectations that U.S. shale oil production has peaked and may start falling in the coming months amid an ongoing collapse in rigs drilling for oil.

According to industry research group Baker Hughes (NYSE:BHI), the number of rigs drilling for oil in the U.S. fell by 26 last week to 734, the lowest since 2010. It was the 19th straight week of declines.

Market players have been paying close attention to the shrinking rig count in recent months for signs it will eventually reduce the glut of crude flowing into the market.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for June delivery dipped 4 cents, or 0.06%, to trade at $63.42 a barrel.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

London-traded Brent futures ended Monday's session little changed at $63.45 after Saudi Arabia's oil minister Ali al-Naimi said that the kingdom's production would stay near record peaks of around 10 million barrels per day in April.

Meanwhile, the spread between the Brent and the WTI crude contracts stood at $5.48 a barrel, compared to $5.57 by close of trade on Monday.

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.