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U.S. oil futures drop to 2-week low ahead of API supply report

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Investing.com -

Investing.com - U.S. oil futures fell to a two-week low on Tuesday, as market players awaited key weekly supply data to gauge the strength of oil demand from the world's largest consumer.

On the New York Mercantile Exchange, crude oil for delivery in September slumped to a daily low of $100.38 a barrel, the weakest level since July 16, before trimming losses to last trade at $101.15 during U.S. morning hours, down 0.51%, or 52 cents.

U.S. oil futures shed 0.41%, or 42 cents, on Monday to settle at $101.67. New York-traded oil futures were likely to find support at $100.11 a barrel, the low from July 16 and resistance at $102.53 a barrel, the high from July 25.

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 million barrels in the week ending July 25.

Earlier Tuesday, the Conference Board reported that its index of consumer confidence rose to 90.9 in July from an upwardly revised 86.4 in June. It was the highest reading since October 2007 and was ahead of expectations for a decline to 85.3.

Investors now shifted their focus to the Federal Reserve's upcoming policy meeting, due to begin later in the day.

The central bank is likely to stick to its timetable to taper its monthly bond purchases by another $10 billion to a total of $25 billion a month.

Meanwhile, Wednesday's preliminary estimate on second quarter economic growth and Friday's U.S. jobs report for July were both expected to indicate that the economic recovery is continuing.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for September delivery inched up 0.12%, or 12 cents, to trade at $107.70 a barrel.

London-traded Brent prices remained supported as tensions between Russia and the West over the situation in Ukraine remained high, while fighting between Israel and Hamas militants in Gaza also remained in focus.

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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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