Crude gains on hopes for bullish supply data
Published Oct 08, 2013 01:10PM ET
Hopes were high the report will show an uptick in demand, which allowed for rising crude prices on Tuesday
On the New York Mercantile Exchange, light sweet crude futures for delivery in November traded at USD103.68 a barrel during U.S. trading, up 0.63%.
The commodity hit a session low of USD102.87 and a high of USD104.06.
The November contract settled down 0.78% at USD103.03 a barrel on Monday.
A U.S. government shutdown has left energy markets with far fewer economic indicators needed to drive trading strategies, though on Wednesday, the U.S. Energy Information Administration is expected to release its weekly supply report despite the deadlock.
Wednesday’s government report could show crude stockpiles rose by 1.8 million barrels due to rising demand.
The American Petroleum Institute will release its inventories report later in the day.
The government shutdown, meanwhile, continued to drag on and weighed on the bargain hunting somewhat.
President Barack Obama has said that he is willing to negotiate with congressional Republicans on a range of spending, healthcare and other issues but only after the government is reopened.
Republicans have opposed agreeing on spending legislation to open the government due to opposition to the president's healthcare reform law.
Obama has also called on Congress to raise the government borrowing limit ahead of the Oct. 17 deadline, when the Treasury Department has estimated the U.S. government will not have enough money to pay its bills.
Meanwhile on the ICE Futures Exchange, Brent oil futures for November delivery were up 0.46% at USD110.19 a barrel, up USD6.51 from its U.S. counterpart.
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Written By: Investing.com
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