Oil regains strength as focus shifts to U.S. stockpile data

Published 2016-11-01, 09:36 a/m
© Reuters.  Oil pushes higher ahead of API stockpile data
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Investing.com - Oil prices pushed higher during North American hours on Tuesday, bouncing back after plunging 4% to one-month lows in the prior session as market players looked ahead to weekly data from the U.S. on stockpiles of crude and refined products.

Industry group the American Petroleum Institute is due to release its weekly report at 4:30PM ET (20:30GMT) later on Tuesday. Official data from the Energy Information Administration will be released Wednesday, amid forecasts for an oil-stock increase of 1.0 million barrels.

Crude oil for December delivery on the New York Mercantile Exchange inched up 35 cents, or 0.75%, to $47.21 a barrel by 9:35AM ET (13:35GMT).

The contract tumbled $1.84, or 3.78%, in the prior session, after falling to as low as $46.63, a level not seen since September 29.

Elsewhere, Brent oil for January delivery on the ICE Futures Exchange in London tacked on 48 cents, or 0.99%, to $49.09 a barrel, after losing $2.07, or 4.08%, on Monday.

London-traded Brent prices slumped to $48.61 during the previous session, a level not seen since September 29, amid mounting skepticism over the implementation of a planned deal by OPEC to limit production.

OPEC reached an agreement to cap output to a range of 32.5 million to 33.0 million barrels per day in talks held in Algeria in late September. However, the 14-member oil group said it won’t finalize details on individual output quotas until its next official meeting in Vienna on November 30.

The possibility that producers could walk away empty-handed from the November meeting looms large after Iraq, Iran, Nigeria and Libya all signaled they might not take part in the proposed production cut deal. Russia’s unclear stance is also fueling uncertainty.

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