Oil prices little changed as dollar gains, U.S. drawdown seen | Reuters

SINGAPORE Oil prices were little changed in thin early Asian trade on Tuesday as a firmer dollar weighed on oil markets while a likely drawdown in U.S. crude and gasoline stockpiles pointed to stronger demand ahead of the U.S.

Reuters May 24, 2016 06:45:05 IST
Oil prices little changed as dollar gains, U.S. drawdown seen
| Reuters

Oil prices little changed as dollar gains US drawdown seen
 Reuters

SINGAPORE Oil prices were little changed in thin early Asian trade on Tuesday as a firmer dollar weighed on oil markets while a likely drawdown in U.S. crude and gasoline stockpiles pointed to stronger demand ahead of the U.S. summer driving season.

U.S. crude futures edged down 4 cents to $48.04 a barrel by 8.16 p.m. ET, having settled down 33 cents in the previous session.

Brent futures dipped 4 cents to $48.31 after closing down 37 cents in the previous session, with both contracts finishing with modest losses for a fourth straight session

U.S. commercial crude oil stocks likely fell by around 2.5 million barrels to 538.8 million in the week ended May 20, a preliminary Reuters analysts' poll taken ahead of weekly industry and official inventory data showed on Monday.

Gasoline stocks likely fell 1.3 million barrels last week, while distillate inventories, which include heating oil and diesel fuel, likely decreased by a million barrels, the poll showed.

The American Petroleum Institute (API) is due to release its inventory data later on Tuesday, while the U.S. Department of Energy's Energy Information Administration (EIA) is due on Wednesday.

The dollar index rose marginally higher against a basket of currencies on Tuesday, as investors continued to factor in an increased chance of a near-term U.S. interest rate rise.

A stronger greenback makes dollar-priced commodities more expensive for holders of other currencies.

Still, U.S. data economic overnight was disappointing, with the preliminary Markit manufacturing PMI in May falling to 50.5, the lowest level this year.

"Markit PMI data continued to point to a difficult period for manufacturing as Q2 unfolds," ANZ said in a market report on Tuesday.

Crude exports from Iraq's southern oil fields have fallen by more than 200,000 barrels per day (bpd) to around 3.15 million barrels so far in May, according to an industry source and loading data. That followed the previous month's near-record of 3.36 million bpd.

Libya's crude production has risen above 300,000 barrels per day (bpd) after the reopening of the Marsa al Hariga export terminal in the east of the country late last week, a spokesman for the Tripoli-based National Oil Corporation (NOC) said on Monday.

(Reporting by Keith Wallis; Editing by Richard Pullin)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

also read

France recalls its ambassadors to US and Australia over AUKUS alliance
World

France recalls its ambassadors to US and Australia over AUKUS alliance

The move comes after Canberra ditched a deal to buy French submarines in favour of US vessels

Goldman Sachs says India could surpass UK as world's fifth largest stock market by 2024
Business

Goldman Sachs says India could surpass UK as world's fifth largest stock market by 2024

Indian start-ups have raised $10 billion through IPOs so far this year — more money than was raised in the last three years, the investment bank said in a report dated 19 September

France cancels defence ministers' meeting with UK over submarine deal row, says source
World

France cancels defence ministers' meeting with UK over submarine deal row, says source

The "meeting planned for this week in London... will not take place due to the French cancelling", said the ministry source.