Investing.com – Crude oil prices were mixed in Asia on Tuesday with the government shutdown worries out of the way for at least three week and markets poised for weekly inventory figures.
On the New York Mercantile Exchange crude futures for March delivery rose 0.38% to $63.81 a barrel, while on London’s Intercontinental Exchange, was last quoted down 0.12% to $69.23 a barrel.
American Petroleum Institute weekly crude and refined product estimates are expected on Tuesday.
As well, the official data from the Energy Information Administration will continue “until further notice” the government agency said Monday.
Initial estimates see a 1.3 million barrels decline in weekly crude stocks; a 1.580 million barrels decline in distillate inventories; and a 2.440 million barrels build in gasoline supplies.
Overnight, crude oil prices settled higher as rising Libyan oil output was offset by ongoing optimism that major oil producers would remain committed to the deal to curb production.
Saudi Oil Minister Khalid al-Falih said he would like to see the deal between OPEC and Russia reducing exports by 1.8 million barrels per day to continue beyond the year-end expiration.
That stoked investor optimism that major oil producers would continue strong compliance with the OPEC-led deal to curb output despite the threat of a ramp up in US shale production.
Crude prices struggled to advance to session highs as reports that Libya’s As-Sarah oilfield resumed production, which is expected to add around 55,000 barrels per day (BPD) to global supplies, limited upside momentum.
Crude prices snapped a four-week winning streak last week as traders questioned whether the recent rally in oil prices was overdone amid expectations that US production would soon rise above 10 million barrels a day.
Investor fears over rising US production comes despite data showing the number of US rigs drilling for oil fell last week by 5 to 747, according energy services firm Baker Hughes.
production rose by 258,000 barrels per day (bpd) to 9.75 million barrels per day last week, the Energy Information Agency (EIA) reported last week.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Source: Investing.com
