U.S. oil futures edged lower on Tuesday, as market players awaited the release of fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of demand in the world’s largest oil consumer.
A day earlier, Nymex oil futures rose 60 cents, or 0.67%, to settle at $90.34.On the New York Mercantile Exchange, crude oil for delivery in November traded at $90.19 a barrel during European morning hours, down 15 cents, or 0.19%.
Futures were likely to find support at $88.18 a barrel, the low from October 2, and resistance at $91.79 a barrel, the high from October 3.
The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles rose by 1.4 million barrels in the week ended October 3.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for November delivery shed 24 cents, or 0.26%, to hit $92.55 a barrel.
London-traded Brent futures fell to $91.25 on Monday, the lowest since June 2012, amid speculation rising global supplies will be more than enough to meet slowing demand.
Global supplies have far outpaced demand in recent months, sparking speculation among traders about whether the Organization of the Petroleum Exporting Countries would lower production to keep prices high.
A report last week showed OPEC oil output hit a two-year high of 31 million barrels per day in September.
Some market analysts believe that only a cut in output by the oil cartel will halt the decline in prices.
Meanwhile the spread between the Brent and the WTI crude contracts narrowed to $2.36 from $2.45 in the previous session.
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