Crude oil prices rose sharply and snapped a four-day losing streak on Tuesday, after a report indicated a deeper OPEC production cuts. Also, traders went long amid expectations of a significant drop in crude stockpiles in the U.S. in the week ended August 23.
The weekly oil report from the American Petroleum Institute is due later today. The U.S. Energy Information Administration is scheduled to release its weekly crude inventory data Wednesday morning.
West Texas Intermediate Crude oil futures for October ended up $1.29, or 2.4%, at $54.93 a barrel.
On Monday, WTI crude oil futures ended down $0.53, or about 1%, at $53.64 a barrel. A day earlier, oil futures shed 2.1%.
Mild optimism about resumption of U.S.-China trade talks contributed a bit to oil’s uptick.
U.S. President Donald Trump said yesterday that he believed Beijing was sincere in its desire to reach an agreement.
The Joint Ministerial Monitoring Committee of OPEC and non-cartel oil producers (OPEC+) reported that OPEC+ production limits, in place since the end of last year, have reached 159% in July 2019, up 22% from a month earlier.
The committee also said it expects a significant drop in crude inventory in the second half of the year.
The material has been provided by InstaForex Company – www.instaforex.com