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U.S. oil futures reverse losses ahead of API supply report

Published 21/04/2015, 15:37
© Reuters.  WTI oil futures turn higher ahead of API supply data
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Investing.com - West Texas Intermediate oil futures turned higher on Tuesday, as traders looked ahead to weekly data on U.S. stockpiles of crude and refined products later in the day.

On the New York Mercantile Exchange, crude oil for June delivery hit an intraday low of $57.18 a barrel, before trading at $57.94 during U.S. morning hours, up 6 cents, or 0.1%. A day earlier, Nymex oil prices tacked on 56 cents, or 0.98%, to end at $57.88.

The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles rose by 2.4 million barrels in the week ended April 17.

Total U.S. crude oil inventories stood at 483.7 million barrels as of April 10, the most in at least 80 years.

U.S. oil futures have been well-supported in recent sessions due to mounting expectations that U.S. shale oil production has peaked and may start falling in the coming months amid an ongoing collapse in rigs drilling for oil.

According to industry research group Baker Hughes (NYSE:BHI), the number of rigs drilling for oil in the U.S. fell by 26 last week to 734, the lowest since 2010. It was the 19th straight week of declines.

Market players have been paying close attention to the shrinking rig count in recent months for signs it will eventually reduce the glut of crude flowing into the market.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for June delivery dipped 4 cents, or 0.06%, to trade at $63.42 a barrel.

London-traded Brent futures ended Monday's session little changed at $63.45 after Saudi Arabia's oil minister Ali al-Naimi said that the kingdom's production would stay near record peaks of around 10 million barrels per day in April.

Meanwhile, the spread between the Brent and the WTI crude contracts stood at $5.48 a barrel, compared to $5.57 by close of trade on Monday.

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