Oil Futures Settle Mixed Tuesday
OLD BRIDGE, N.J. (DTN) -- Oil futures nearest to delivery traded on the New York Mercantile Exchange and Brent crude on the Intercontinental Exchange settled mixed ahead of weekly supply data expected to show a drop in crude inventories.
NYMEX July West Texas Intermediate and August ICE Brent crude futures settled higher, reversing earlier losses on a report from Bloomberg News that U.S. President Donald Trump is pressuring the Organization of Petroleum Exporting Countries to increase production by 1 million bpd. The report said Trump suggested the OPEC production increases in reaction to soaring U.S. gasoline and diesel prices in excess of $3 gallon, the highest levels in more than three years. Trump also hinted that he may access the Strategic Petroleum Reserve if OPEC fails to act.
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The American Petroleum Institute is scheduled to release its weekly supply data at 4:30 PM ET, while the Energy Information Administration will release its data at 10:30 AM Wednesday.
Media reports indicate Tuesday's API weekly supply report could show a 2.5 to 3.0 million bbl draw in weekly crude oil inventories, as well as a build of 800,000 bbl for distillate stocks and a 400,000 bbl build in gasoline inventories.
At the 2:30 PM ET settlement, NYMEX July WTI futures settled 77cts higher to $65.52 bbl following three days of decline, while August WTI futures rose 78 cents to $65.46 bbl settlement.
ICE August Brent settled up 9 cents in spirited market on close trading to $75.38 bbl after two consecutive days of decline. The September Brent contract rose 3 cents to $75.13 bbl settlement.
On the products side, NYMEX July RBOB futures fell 1.62 cents to $2.1062 gallon settlement, its lowest settling price since May 8 and August RBOB futures declined 1.41 cents to settle at $2.0975 bbl, also its lowest closing price since May 8 in the seasonally backwardated market.
July ULSD settled down 1.09 cents at $2.1416 gallon, paring earlier losses, which saw the contract move as low as $2.1164 bbl. August USLD fell 1.02 cents to settle at $2.1456 gallon.
Brian Whary can be reached at brian.whary@dtn.com
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