Investing.com – Crude oil prices fell in Asia on Tuesday as commodities eased following a sharp equity market rout overnight in the US that spilled over into Tokyo and Asian bourses.
On the New York Mercantile Exchange crude futures for March delivery fell 0.84% to $63.61 a barrel, while on London’s Intercontinental Exchange, lost 0.16% to $66.92 a barrel.
The American Petroleum Institute reports its estimates of crude and refined product stocks last week with official data due on Wednesday from the Energy Information Administration. Initial estimates see crude rose 2.86 million barrels, distillates were down 1.490 million barrels and gasoline inventories gained 615,000 barrels.
Overnight, prices settled lower as a firmer dollar and ongoing investor jitters concerning rising US output weighed on sentiment.
Crude prices continued to retreat from multi-year highs as the prospect of rising US production weighed on sentiment amid data last week showing US drilling rigs rose to their highest since Aug. 11.
The number of oil rigs operating in the US rose by six to 765, according to data from energy services firm Baker Hughes. That may well add to the burgeoning level of US output, which rose above 10 million barrels per day in November, the highest level in nearly half a century.
Also adding to downside momentum in oil prices was a rise in the dollar, which was on track to post a two-day winning streak for the first time in nearly a month, while a slowdown in refinery activity is also expected to curb oil prices as refiners enter a period of maintenance.
With refinery activity lighter, excess crude stockpiles are likely to build, dampening major oil producers’ efforts to rid the market of excess supplies, pressuring oil prices.
A fresh batch of US energy supply data is expected to show crude supplies rose for the second straight week.
Yet some investors continued to expect oil prices will resume their recent rally as recent data showed traders increased their bullish bets on oil for the fourth-straight week.
Speculative net long position in crude oil rose by about 8,000 contracts to a net long 734,600 contracts, according to the most recent Commitment of Traders (COT) report.
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Source: Investing.com
