Futures added 0.3 percent in New York after dropping 0.8 percent the previous two sessions. U.S. inventories slid by 7.8 million barrels last week, the American Petroleum Institute was said to report Tuesday, while a Bloomberg survey also forecast a decline. The Energy Information Administration marginally boosted its estimates for American production in 2017 and 2018. “The recovery this morning is most likely in anticipation of a sixth inventory decline in crude oil this afternoon” when the EIA releases its weekly stockpiles report, said Ole Sloth Hansen, head of commodity strategy at Saxo Bank A/S in Copenhagen. Gains will be capped by a stronger dollar, he said. Click Read More below for additional detail.
Brent crude on Monday touched its highest level since 2014 as oil prices increased on rising tension between the US and Iran.
The international oil price, which has benefited from a lift in US demand and Opec supply constraints this year, rose nearly 1 per cent to $75.53 in European trading after earlier hitting a session peak of $75.89, its highest level since November 2014.
The move came after Iran’s president Hassan Rouhani warned on Sunday that US president Donald Trump would be making a “historic” mistake if the US were to withdraw from its 2015 nuclear deal with Tehran.
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