National Average Price for Regular Unleaded Current: $3.186; Month Ago: $3.146; Year Ago: $2.175. National Average Price for Diesel Current: $3.293; Month Ago: $3.264; Year Ago: $2.426.
Futures in New York rose as much as 1.2 percent after dropping on Monday. While U.S. inventories are forecast to have added 3.4 million barrels last week, that would mark slower growth than the prior week. OPEC and its partners, which are cutting output to ease the global glut, still expect markets to balance by about the third quarter, according to people familiar with the matter. U.S. crude inventories are at their highest since December and probably grew again last week, according to a Bloomberg survey before government data due Wednesday. While supplies are set for a fourth weekly advance, the expected increase is smaller than the 5 million-barrel gain a week earlier. Click Read More below for additional information.
Oil has been trading in a tight range this month, with prices hovering around $60 a barrel as rising U.S. output continues to stoke fears that a shale boom will limit price increases. Still, the Organization of Petroleum Exporting Countries and allied producers are continuing production cuts in an effort to drain a global glut and help prop up prices. A robust global economy has also led banks including Goldman Sachs Group Inc. to project strong demand for oil this year. The IEA raised its estimate for global oil demand growth by 90,000 barrels a day to 1.5 million a day in 2018 as a stronger outlook for developed economies offsets weakening expectations for emerging nations. Steady growth was also reflected in the American Petroleum Institute’s latest report showing U.S. oil consumption rose to the highest in 11 years even as crude production hit a new monthly record. Click Read More below for additional information.