December Nymex WTI prices are trading marginally higher Tuesday, modestly recovering from yesterday’s sharp declines. December WTI futures ended Monday’s session $1.79 lower at $88.65 a barrel after oil prices came under pressure amid a risk aversion theme. Some market participants are also expecting US oil inventories to rise for a third consecutive week which also contributed to Monday’s decline. Weekly US commercial crude oil stocks are expected to show a 1.7 million-barrel increase for the week ended October 19, Platts says citing a poll of analysts. The API will release its weekly report on Tuesday, while the US EIA report is due Wednesday. At 369.230 million barrels as of October 12, US crude stocks were 11% above the EIA five-year average and are thus amply supplied going into this week’s data release, Platts says. December WTI futures have remained in positive territory so far Tuesday but have pared back from their best levels, slipping back from a session high of $89.29 to an intra-day low of $88.72, with the market currently trading $88.89 a barrel, up 24 cents on the session.
EasyForexNews Research Team