Oil prices little changed as dollar gains, US drawdown seen
The US commercial crude oil stocks 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.
Oil prices were little changed in thin early Asian trade on Tuesday as a firmer US dollar weighed on oil markets while a likely drawdown in the US crude and gasoline stockpiles pointed to stronger demand ahead of the US summer driving season.
The US crude futures edged down 4 cents to $48.04 a barrel by 0016 GMT, having settled down 33 cents in the previous session.
Brent crude 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.
The US commercial crude oil stocks 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 US Department of Energy's Energy Information Administration (EIA) data 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 US interest rate rise.
A stronger greenback makes dollar-priced commodities more expensive for holders of other currencies.
Still, the US 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 barrels per day (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.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
Power of Compounding: Salary Rs 25,000 per month; is it possible to create over Rs 2.60 crore corpus; understand it through calculations
New Year Pick by Anil Singhvi: This smallcap stock can offer up to 75% return in long term - Check targets
PSU Oil Stocks: Here's what brokerage suggests on these 2 largecap, 1 midcap scrips - Buy, Sell or Hold?
Power of Compounding: How many years it will take to reach Rs 2 crore corpus if your monthly SIP is Rs 3,000, Rs 4,000, or Rs 5,000
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
08:57 AM IST