Oil at Multi-Month Highs Thanks to Strong U.S. Economic Data
Investing.com
Published Dec 17, 2019 01:16PM ET
Updated Dec 17, 2019 04:03PM ET
Investing.com - U.S. economic numbers are doing for oil what the Trump administration’s deal for China couldn’t. Crude futures reached multi-month highs on Tuesday as upbeat U.S. manufacturing and housing figures turned investors' mindsets into risk-on mode.
U.S. West Texas Intermediate pushed toward $61 per barrel the first time since May. U.K. Brent extended beyond $66 to reach a three-month high, after muted activity since Friday’s much-hyped U.S.-China phase one deal announced by the administration.
NYMEX-traded WTI, the U.S. crude benchmark, settled up 73 cents, or 1.2%, to $60.87 per barrel. It earlier reached $60.97, its highest since Sept 17.
ICE-traded Brent, the global oil benchmark, settled up 76 cents, also 1.2%, at $66.10. It earlier hit $66.24, its highest since the mid-September attack on Saudi oil facilities that briefly knocked out about 5% of global crude supply.
Prior to Tuesday, oil bulls had trouble moving the needle on crude prices as the U.S.-China phase one agreement appeared long on promise and short on facts, prompting caution rather than risk.
Crude prices rose after data from the Federal Reserve showed manufacturing output rose more than expected in November, as the end of a strike at General Motors (NYSE:GM) plants boosted auto production. U.S. housing starts also rose more than expected last month, figures showed.
Notwithstanding Tuesday’s rally, traders were also on the lookout for weekly U.S. oil inventory data that would show how demand and supply fared in the most recent week.
The American Petroleum Institute (API) will issue at 4:30 PM a snapshot of what the Energy Information Administration (EIA) will likely report Wednesday as official petroleum supply-demand balances for last week. Analysts surveyed by Investing.com think crude stockpiles may have fallen by as much as 1.3 million barrels for the week ended Dec. 13.
If true, it would be the first crude stockpile drop in two weeks.
In the previous week to Dec. 6, the EIA reported a crude inventory rise of 822,000 barrels versus market expectations for a drop of 2.76 million barrels.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.