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Oil rises on bargain hunting

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Investing.com - " Oil futures traded higher during Wednesday's Asian session as traded did some bargain hunting with crude following some concerning inventories data.

On the New York Mercantile Exchange, light, sweet crude futures for December delivery rose 0.41% to USD93.75 per barrel in Asian trading Wednesday. The December contract settled lower by 1.32% at USD93.02 per barrel on Tuesday.

Oil futures came under pressure Tuesday after the American Petroleum Institute, an industry group, will release its inventories report later in the day, while Wednesday's government report could show crude stockpiles rose by 1.8 million barrels, which sent prices falling on Tuesday.

The inventories data had traders overlooking a decent economic data point out of the U.S., the world's largest oil consumer.

In U.S. economic news out Tuesday, the Institute of Supply Management said its non-manufacturing purchasing managers' index rose to 55.4 in October from 54.4 in September, beating forecasts for a 54.0 reading. Readings above 50 indicate expansion.

However, the ISM number sent the U.S. dollar high on speculation the U.S. economy is strengthening to the point where the Federal Reserve could consider tapering its USD85 billion-per-month asset-buying sooner than riskier assets would like to see.

Brent prices were supported by news of a shooting in the Libyan capital of Tripoli Tuesday. Libya, an OPEC member and home to Africa's largest oil reserves, has seen oil production tumble due to increase violence.

Elsewhere, Brent futures for December delivery rose 0.37% to USD105.78 per barrel on the ICE Futures Exchange.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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