Crude oil futures rose on Tuesday, after a two-day slide, as traders await fresh updates on weekly U.S stockpiles.
West Texas Intermediate crude for November delivery CLX19, +0.98% gained 45 cents, or 0.8%, at $53.96 a barrel on the New York Mercantile Exchange, after falling 0.9% on Monday. The November contract, expires at Tuesday’s settlement. The December contract CLZ19, +0.95% was up 32 cents, or 0.6%, at $53.86 a barrel.
Global benchmark Brent crude for December BRNZ19, +0.86%, meanwhile, added 43 cents, or 0.7%, to $59.39 a barrel on the ICE Futures Europe exchange, following a 0.8% skid on a day ago.
Crude-oil has been under pressure amid worries about global appetite for the commodity as economies inside and outside of the U.S. show signs of a slowdown. However, hope that the U.S. and China may strike a trade agreement has provided a tepid lift for crude prices.
“Oil is down 1 % since Monday morning with concerns about global demand steering the ship as geopolitical risk premium continues to evaporate,” wrote Stephen Innes, an independent market strategist, in a Tuesday research note.
President Trump on Monday said Sino-American trade negotiations were progressing well, and his top trade negotiator, Robert Lighthizer, suggested that a draft agreement could be forged at the Nov, 11-17 Asia-Pacific Economic Cooperation meeting in Santiago, Chile.
Later in the session, the American Petroleum Institute will release its weekly inventory update at 4:30 p.m. Eastern Time, ahead of the U.S. Energy Information Administration due at 10:30 a.m. Wednesday.
“Despite all of the doom and gloom talk and the expectations of a big oil supply build, the whisper number on the street may actually give the market a surprise, when the American Petroleum Reports (API) releases its report tonight after the close at 3.30p Central Time,” wrote Phil Flynn, senior market analyst at The Price Futures Group, in a daily research note.
“Despite low refinery runs and an expected build in the Cushing, Oklahoma delivery hub, sources are suggesting that we may get a big surge in U.S. oil exports and a drop in U.S. oil imports and could set the stage for a surprise crude oil draw,” he wrote.