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Oil moves higher on U.S. stockpile draw bets

Published 20/12/2016, 13:39
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Investing.com - Oil turned higher Tuesday on expectations of a fall in U.S. crude stocks in the latest week.
Brent crude added 48 cents, or 0.87%, to $55.40 at 08:00 ET. U.S. crude gained 28 cents, or 0.53%, to $53.34.
Official Energy Information Administration figures due out Wednesday are forecast to show crude stocks falling by 2.4 million barrels.
The future path of the market will hinge on compliance levels for agreed output cuts.
OPEC has agreed to reduce production by 1.2 million barrels a day and non-OPEC producers by 558,000 barrels.
Investors are also looking to a possible increase in North American shale activity in a higher price environment.
The number of oil rigs operating in the U.S. is now at its highest level since the start of the year.
The dollar index was higher. A stronger dollar dampens demand for oil.

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