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U.S. oil futures bounce off 8-month low ahead of supply report

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Investing.com -

Investing.com - West Texas Intermediate oil futures bounced off an eight-month low struck in the previous session on Tuesday, ahead of the release of U.S. weekly supply data.

On the New York Mercantile Exchange, crude oil for delivery in October inched up 0.56%, or 52 cents, to trade at $93.18 a barrel during U.S. morning hours. Prices held in a range between $92.77 and $93.94 a barrel.

A day earlier, U.S. oil prices fell to $91.80 a barrel, a level not seen since January 13, as continued strength in the U.S. dollar and concerns about weak demand weighed.

Futures were likely to find support at $91.43 a barrel, the low from January 13 and resistance at $94.99 a barrel, the high from September 5.

Traders awaited key U.S. weekly supply data to gauge the strength of oil demand from the world's largest consumer.

The American Petroleum Institute will release its inventories report later in the day, while Wednesday's government report could show crude stockpiles fell by 1.5 million barrels in the week ended September 5.

Gains were limited as expectations for higher U.S. interest rates continued to bolster the dollar.

Oil prices typically weaken when the U.S. currency strengthens as the dollar-priced commodity becomes more expensive for holders of other currencies.

The dollar rose to its highest level in six years against the yen, while the euro slid to fresh 14-month lows after a study by the San Francisco Federal Reserve published on Monday indicated that Fed officials see rates rising earlier than markets expect.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for October delivery shed 0.15%, or 15 cents, to trade at $100.05 a barrel.

London-traded Brent prices tumbled to $99.36 on Monday, the lowest since May 1, 2013, as ample global supplies drove prices lower.

Libya's National Oil Corporation said on Monday that the country's oil output increased by 15,000 per day from a week earlier to hit 740,000 barrels per day, as the reopening of several oil export ports sparked a boost in production.

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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.

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