Investing.com – Crude oil prices settled lower on Tuesday as data expected to show U.S. crude stockpiles rose for the third straight week offset earlier optimism which followed comments from Iraqi oil minister Jabar al-Luaibi on a possible extension to the Opec-led agreement to cut oil output.
On the New York Mercantile Exchange for November delivery fell by 43 cents to settle at $49.48 a barrel, while on London’s Intercontinental Exchange, lost 42 cents to trade at $55.06 a barrel.
Investor expectations that U.S. crude stockpiles are poised to rise for the third week in a row offset early gains which followed after Iraqi oil minister Jabar al-Luaibi said that Iraq and other OPEC members are considering options to its production-cut agreement, including an extension beyond March and a deeper output cut.
“All in all, the outlook seems to be bright and prices are rising,” al-Luaibi said during an industry event in the United Arab Emirates.
In May, Opec and non-Opec members agreed to extend production cuts for a period of nine months until March, but stuck to production cuts of 1.8 million bpd agreed in November last year.
Also weighing on crude prices was a report from the Energy Information Agency on Monday, showing U.S. shale production is set to rise for the tenth straight month in October as the recent uptick in U.S. oil prices – above $50 a barrel – spurred drilling activity.
U.S. crude inventory data from the American Petroleum Institute on Tuesday as well as a further report from EIA on Wednesday are expected to show an .
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.