Oil recovers as Turkey tumult calms, U.S. supplies seen falling
Pubdate：2018-08-15 11:32
Source：liyanping
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NEW YORK (Bloomberg) -- Crude rose as troubles in Turkey showed signs of abating and amid expectations of tightening inventories in the U.S.
Futures advanced as much as 1.7% in New York on Tuesday after Monday’s decline. The rout in Turkish assets eased and the lira rose amid the economic troubles in Turkey. Meanwhile, U.S. crude inventories are seen falling for a second week.
“Today, there is more of a focus on this situation with the emerging markets calming down,” said John Kilduff, a partner at New York-based hedge fund Again Capital LLC.
Crude oil has averaged $67.99/bbl this month in New York as trade tensions between the U.S. and China weigh on the benchmark. At the same time, investors are assessing rising OPEC production against the potential of decreasing supply from Iran due to U.S.-imposed sanctions. Even though OPEC boosted output in July, Saudi Arabia’s production dropped by 201,000 bpd.
Saudi Arabia’s reported drop in production is “being seen as very supportive because they are obviously going to be careful about not oversupplying the market,” Kilduff said.
West Texas Intermediate crude for September delivery climbed 79 cents to $67.99/bbl at 10:04 a.m. on the New York Mercantile Exchange. Total volume traded Tuesday was about 25% below the 100-day average.
Brent for October settlement added 81 cents to $73.42/bbl on the London-based ICE Futures Europe exchange, and traded at a $6.12 premium to WTI for the same month.
In the U.S., crude inventories probably dropped by 2.5 MMbbl last week, according to the Bloomberg survey of analysts before government data is released Wednesday. Stockpiles in the nation’s storage hub in Cushing, Okla., probably increased by 500,000 bbl, according to a Bloomberg forecast.
The industry-funded American Petroleum Institute will release its weekly tally of inventories later Tuesday.
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