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Indonesia News Portal for Traders | Financial & Business Updates

29 October 2024 17:13  |

Oil prices edge up as US reserve bid lends support

Oil prices inched up on Tuesday after tumbling 6% in the previous session, as a U.S. plan to buy oil for the Strategic Petroleum Reserve (SPR) provided some support though wider concerns about weaker future demand growth exerted pressure.

Brent crude futures climbed 63 cents, or 0.88% to $72.05 a barrel by 0847 GMT, while U.S. West Texas Intermediate crude was 58 cents, or 0.86%, higher at $67.37 a barrel.

On Monday, both contracts fell to their lowest since Oct. 1 after Israel's retaliatory strike on Iran at the weekend bypassed Tehran's oil infrastructure.

With signs that neither country seemed likely to escalate the conflict after the attack, investor concerns about flagging global oil demand growth for this year and next rose to the fore.

The U.S. on Monday said it was seeking up to 3 million barrels of oil for the SPR for delivery through May next year, a purchase that would leave the government with little money to buy more until lawmakers approve more funds.

Source: Reuters

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