Oil Prices Rise as Investors Look Ahead to Stockpile Data
Investing.com - Oil prices were higher on Tuesday, despite an increase in U.S. crude production and concern that OPEC could increase output as investors looked ahead to the latest U.S. stockpile data.
Crude oil futures increased 0.48% to $65.06 a barrel as of 4:36 AM ET (8:36 GMT). Meanwhile Brent crude futures, the benchmark for oil prices outside the U.S., inched up 0.15% to $75.40.
Prices were held back by concern that the U.S. is increasing production, after two oil rigs were added in the U.S. in the week of June 1, bringing the total count to 861, according to data from Baker Hughes on Friday. It was the highest level rig count since March 2015.
U.S. crude production has been rising to record levels since late last year. In March it jumped 215,000 barrels per day (bpd) to 10.47 million bpd, a new monthly record, the Energy Information Administration said last week
Traders are also concerned that the Organization of the Petroleum Exporting Countrie and Russia could raise oil output by as much as one million bpd as early as June, as the organization faces losses from Venezuela and Iran.
The organization is set to meet in Vienna on June 22. OPEC has been cutting crude output by 1.8 million barrels per day (bpd) to prop up oil prices. The pact began in January 2017 and is set to expire at the end of 2018.
Investors will look closely to data this week on U.S. commercial crude inventories to gauge how fast American supply will rise.
The American Petroleum Institute releases it weekly data on U.S. crude oil inventories at 4:30 PM ET (20:30 GMT) on Tuesday, followed by the EIA report at 10:30 AM ET (14:30 GMT) on Wednesday.
In other energy trading, Gasoline RBOB Futures decreased 0.19% at $2.1208 a gallon, while heating oil rose 0.11% to $2.1549 a gallon. Natural gas futures was down 0.51% to $2.915 per million British thermal units.
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