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WTI oil futures jump to 6-week high; Brent falls to 3-week low

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Investing.com - U.S. crude oil futures jumped to a six-week high on Tuesday, amid optimism this week's U.S. supply data will show a drop in inventories.

On the New York Mercantile Exchange, West Texas Intermediate crude for delivery in January traded at USD98.18 a barrel during U.S. morning trade, up 0.85%. New York-traded oil futures rallied to a session high of USD98.74 a barrel earlier, the strongest level since October 28.

The January contract settled 0.32% lower on Monday to end at USD97.34 a barrel.

Nymex oil futures were likely to find support at USD96.30 a barrel, the low from December 4 and near-term resistance at USD98.80 a barrel, the high from October 28.

The American Petroleum Institute will release its inventories report later in the day, while Wednesday's government report could show crude stockpiles fell by 2.7 million barrels in the week ended December 6.

U.S. crude oil inventories fell by 5.6 million barrels in the previous week to 385.8 million, the first weekly decline in 11 weeks.

Elsewhere, on the ICE Futures Exchange in London, Brent oil futures for January delivery shed 0.3% to trade at USD109.06 a barrel. London-traded Brent oil futures fell to a session low of USD108.90 a barrel earlier, the weakest level since November 25.

Brent prices were pressured following reports that Libya will reopen its main oil ports.

The spread between the Brent and U.S. crude contracts narrowed to USD10.88 a barrel, the smallest since November 11.

The gap between the two contracts has narrowed nearly USD8 since November 27 amid prospects for an easing of a supply bottleneck to refiners in Texas from the U.S. storage hub of Cushing, Oklahoma.

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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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