Crude oil edged
back from a five-week high on Tuesday, as rising U.S. shale oil
production weighed against support from tensions in the Middle East and
production cuts in OPEC and other states.
Brent
crude LCOc1, the international benchmark for oil, was down 8 cents from
its previous close at $55.90 per barrel at 1225 GMT. Earlier in the
session, Brent had climbed to its highest since March 7 at $56.16 a
barrel.
U.S. West Texas Intermediate (WTI) CLc1 fell by 9 cents to $52.99 a barrel, after touching a five-week high of $53.23 a barrel.
Brent has risen in each of the previous six sessions, while WTI gained for the last five days.
"We are getting into the high risk part of this rally. It has been going on for a long time," said Ric Spooner, chief market analyst at CMC Markets in Sydney.
"I wouldn't be surprised to see a bit of book squaring going on now, ahead of the U.S. inventory data which is due on Thursday morning Asia time," he said, also noting that current prices have attracted shale oil producers in the past.
U.S. crude inventories have touched record highs at both the U.S. storage hub of Cushing, Oklahoma and in the U.S. Gulf Coast in recent weeks, according to U.S. government data.
A Reuters poll of analysts forecast a rise in U.S. crude inventories for a fourth straight week.
Data from industry group API is due out on Tuesday, while figures the U.S. Energy Information Administration will be released on Wednesday.
U.S. West Texas Intermediate (WTI) CLc1 fell by 9 cents to $52.99 a barrel, after touching a five-week high of $53.23 a barrel.
Brent has risen in each of the previous six sessions, while WTI gained for the last five days.
"We are getting into the high risk part of this rally. It has been going on for a long time," said Ric Spooner, chief market analyst at CMC Markets in Sydney.
"I wouldn't be surprised to see a bit of book squaring going on now, ahead of the U.S. inventory data which is due on Thursday morning Asia time," he said, also noting that current prices have attracted shale oil producers in the past.
U.S. crude inventories have touched record highs at both the U.S. storage hub of Cushing, Oklahoma and in the U.S. Gulf Coast in recent weeks, according to U.S. government data.
A Reuters poll of analysts forecast a rise in U.S. crude inventories for a fourth straight week.
Data from industry group API is due out on Tuesday, while figures the U.S. Energy Information Administration will be released on Wednesday.
No comments:
Post a Comment