Crude futures were seen trading lower on Tuesday as investors’ worries over the crises in Egypt, the warning of a storm in the Gulf of Mexico and supply disruptions in Iraq and Libya, among all the concerns is the worries of whether the US central Bank would begin to taper its asset-purchasing program earlier than expected.
WTI futures declined 0.68% to $106.13 a barrel on New York’s NYMEX at the time of writing, while the European benchmark Brent fell 0.75% to $109.08 after it climbed the $110-level during the Monday session.
Crude Futures – US Stockpiles
The North American crude declined for a second day, after hitting its longest advance in over three months. The speculation over the Federal Reserve’s (Fed) possible tapering forecast have been putting pressure on stocks and commodities, causing highly volatile trading.
Analysts forecasted that the US crude inventories reduced to 359.2 million barrels from previously forecasted 1.25 million barrels last week. If the figures from the expected Energy Information Administration (EIA) report match the predicted figures, it would be the lowest since September.
The US gasoline inventories are expected to drop by 1.25 million barrels in the week ended August 16, while distillate inventories are expected to show a rise of 750,000 barrels.
On Tuesday, a separate report is expected from the American Petroleum Institute (API) which would show the information collected on a voluntary basis.
Crude futures were seen in red right after the announcement from the US National Hurricane Center said that there were no tropical cyclone activities in the Atlantic basin. While the Oil Company BP Plc announced it would begin to return its offshore workers back to the oil and gas facilities in Gulf of Mexico.
While the oil-producing country Libya, has been affected by the on-going violence and crisis, pushing exports to its lowest since 2011.
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