Crude Oil Rises As Key Supply Data Looms
Crude oil prices continued gains in Asia on Tuesday with estimates of U.S. stockpiles ahead.
The American Petroleum Institute will release its estimates of crude and refined stockpiles at the end of last week later today, followed Wednesday by more closely watched figures from the U.S. Department of Energy.
On the New York Mercantile Exchange, WTI crude for December delivery rose 0.34% to $41.88 a barrel.
Overnight, crude futures rose considerably Monday after falling to fresh 10-week lows earlier in the session, as investors reacted to a series of airstrikes from France against the Islamic State in Syria in response to Friday’s terrorist attacks in Paris.
On the Intercontinental Exchange (ICE), Brent crude for January delivery wavered between $43.16 and $45.17 a barrel before closing at $44.59, up 0.13 or 0.29% on the day.
Over the last 30 days of trading, North Brent Sea crude has fallen precipitously amid continuing fears regarding the impact of a glut of oversupply on global markets. Since approaching $51 a barrel on Oct. 16, Brent crude futures have fallen by more than 9%.
In Iraq, output remains near record-highs after surging to an all-time high of 4.1 million barrels per day earlier this summer. At that point, ISIS controlled approximately 10% of the nation’s oil fields, according to CNN. As geopolitical tensions intensify, oil prices generally spike amid stronger demand.
The U.S. Dollar Index, which measures the strength of the greenback against a basket of six other major currencies, jumped more than 0.45% on Monday to an intraday high of 99.40. In U.S. afternoon trading, the index neared last week’s highs when it surged to its strongest level in seven months.
Dollar-denominated commodities such as crude become more expensive for foreign purchasers when the dollar appreciates.