Oil settles higher as investors focus on supply signals
Oil prices settled higher on Tuesday, bouncing off the previous session’s five-month lows, as investors reassessed expectations of a looming glut and sought clarity on the trade dispute between the U.S. and China, the world’s two biggest oil consumers.
Brent crude futures rose 31 cents, or 0.5%, to settle at $61.32 a barrel, while U.S. West Texas Intermediate crude futures for November delivery, which expired on Tuesday’s settlement, closed up 30 cents, or 0.5%, at $57.82.
Both contracts had hit their lowest since early May on Monday, as record U.S. oil production and the decision by the Organization of the Petroleum Exporting Countries and allies to press ahead with planned supply hikes raised expectations of oversupply.
However, relatively low U.S. crude and distillate fuel inventories were helping counter some of the pressure on oil benchmarks, Bjarne Schieldrop, chief commodities analyst at SEB, said.
The U.S.-China trade dispute has also increased anticipation that a slowdown in global economic growth will curb demand for oil. Both sides have, however, made some efforts to downplay the disagreement.
U.S. President Donald Trump, who is set to meet China’s Xi Jinping in South Korea next week, said on Monday he expects to reach a fair trade deal with his counterpart.
Source : Reuters.com
