Crude oil advances ahead of API data

Crude oil advances ahead of API dataCrude oil has gained 2.85 percent ahead of the release of U.S. crude inventories report that may show a drop for a sixth straight week.

The American Petroleum Institute due on Tuesday may signal a fall in crude stocks by 1.7 million barrels in the week ended June 5.

Eyes will focus tomorrow on the EIA weekly report, where last week’s data signaled a slide in U.S. crude inventories by 1.9 million barrels in the week ended May 29.

Separately, the EIA raised its oil demand forecasts for this year to 380,000 barrels per day from 340,000 bpd estimated previously.

Oil prices benefited from the drop in the dollar for a second straight session on Tuesday on the back of reports expressing the worries of President Barack Obama regarding the strength of the dollar.

The dollar index, which tracks the green currency’s movements versus a basket of major currencies, retreated to 95.16, falling from a peak of 95.60, while the session’s low was recorded at 94.85.

It is worthwhile to mention that crude oil prices slipped last week after OPEC members decided to hold their production quota, despite the oversupply in the oil market.

As of 08:28 p.m. GMT, crude oil futures for July delivery traded around $60.21 a barrel, after hitting a high of $60.36.

Brent crude rose to $64.95, compared with the session’s opening at $62.75.

Ahmed Mamdouh

Ahmed Mamdouh, Co-Founder and Head of English Fundamental Analysis at, with 7 years of experience in the financial markets. Mamdouh holds a Master’s Degree in Economics from The American University in Cairo and a Bachelor Degree in Economics from The Faculty of Economics and Political Science, Cairo University.

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