Crude Gains In Asia As Attention Turns To API Estimates

Investing.com – Crude oil rose in Asia on Tuesday ahead of industry estimates of US crude and refined product inventories that will be closely watched for signs of the impact of a ramp up min domestic crude production.

On the New York Mercantile Exchange crude futures for March delivery rose 0.32% to $59.48 a barrel, while on London’s Intercontinental Exchange, gained 0.21% to $62.86 a barrel.

The American Petroleum Institute reports estimates for crude and refined product stocks last week to be followed by official data from the Energy Information Administration on Wednesday. Initial analyst figures expect a 2.6 million barrels build in crude, a 1.625 million barrels fall in distillates and a 1.367 million barrels increase in gasoline stocks.

Overnight, prices settled higher as an upbeat OPEC monthly report underlying continued global oil demand growth lifted investor sentiment.

OPEC said it expects global oil demand growth to rise by 1.59 million barrels a day (bpd), up 60,000 bpd from December’s forecast. The uptick in the oil cartel’s outlook for global oil demand growth reflected a positive economic outlook.

Offsetting that was an upward revision to non-OPEC output expected to rise to a total of 59.26 million bpd this year, 320,000 bpd higher than its last forecast.

The US makes up more than half the non-OPEC upward revision, reaffirming recent data from the EIA, which showed US crude oil output continued to rise above 10 million bpd last week.

Data from Baker Hughes showing oil rigs operating in the US rose to a more than one year high also pointed to a possible ramp up in domestic oil production as US shale producers take advantage of higher crude oil prices.

Yet some OPEC members remained adamant that rising shale production wouldn’t prove to be a “huge distorter” of the market.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

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.