Investing.com - West Texas Intermediate oil futures rallied sharply on Tuesday, as market players looked ahead to fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of demand in the world’s largest oil consumer.
Crude oil for delivery in December on the New York Mercantile Exchange jumped 49 cents, or 1.12%, to trade at $44.36 a barrel during U.S. morning hours. It earlier fell to $43.57, the lowest since October 28.
On Monday, Nymex oil prices shed 42 cents, or 0.95%, after industry research group Genscape estimated a build of approximately 1.8 million barrels at the Cushing, Oklahoma delivery point for U.S. crude in the week ended Friday.
The American Petroleum Institute will release its own inventories report later in the day, while Thursday’s government report could show crude stockpiles rose by 0.75 million barrels in the week ended November 6.
The report comes out one day later than usual due to Wednesday's Veterans Day's holiday in the U.S.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for January delivery hit a session low of $47.67, a level not seen since October 28, before rebounding to trade at $48.15, up 23 cents, or 0.48%.
A day earlier, Brent prices declined 25 cents, or 0.52%, as ongoing worries over the health of the global economy fueled concerns that a global supply glut may stick around for longer than anticipated.
The International Energy Agency warned Tuesday that crude prices are set for a slow recovery. In its World Energy Outlook, the IEA said that OPEC’s unwillingness to reduce its oil output could help usher in a sustained period of low prices, before recovering to $80 per barrel in 2020.
The oil market has been volatile in recent months amid uncertainty about how quickly the global glut of crude is set to shrink.
Global oil production is outpacing demand following a boom in U.S. shale oil production and after a decision by the Organization of Petroleum Exporting Countries last year not to cut production.
Worries over a stronger U.S. dollar, prospects of higher interest rates in the U.S. next month and concerns over weakening demand from China also weighed.