January NYMEX WTI futures are trading higher Tuesday extending their gains from the previous trading day. January WTI futures ended Monday’s session 47 cents higher at $87.20 a barrel, underpinned by hopes of increased demand from China. Prices were subject to a $86.48 to $87.71 range. This morning, January WTI futures have extended their gains, buoyed by hopes for a pre-Christmas deal on the US deficit, advancing from an intra-day low of $87.33 to highs of $87.90. In terms of supply, weekly oil inventory data due this week by the American Petroleum Institute (API) and the US Energy Information Administration (EIA) are expected to show a drawdown in US commercial crude oil stocks of 2.3 mln barrels for the week ended December 14, Platts says citing its survey of analysts. The API report is due late Tuesday while the EIA data are due Wednesday. At 372.6 million barrels, for the week ended December 7, US crude oil inventories were viewed as amply supplied, sitting 13.75% above the five-year average of EIA data for the period. January WTI futures now trade at $87.76 a barrel, up 56 cents.
EasyForexNews Research Team