West Texas Intermediate (WTI) rebounded on Tuesday from its biggest drop in a week on speculations that the US crude inventories dropped for the first time in more than two months, while Brent crude eased further below the $111-level. Traders continue to focus on the historic Iran deal.
WTI for January delivery rose by 53 cents to $94.62 per barrel on the New York Mercantile Exchange. It stood at $94.48 at 3:45pm in Singapore. The contract dropped to its lowest level since November 20, down by 75 cents to $94.09 yesterday.
European benchmark Brent for January settlement dropped 0.11% at $110.76 a barrel on the ICE Futures Europe exchange. Brent crude was at a premium of $16.28 to WTI futures.
The world’s biggest crude consumer’s stockpiles dropped by 300,000 barrels in the week ended November 22, first decline in over two months according to forecasts ahead of the weekly official reports from the US Energy Information Administration (EIA), which is expected to be released on Wednesday.
Iran
Five permanent Security Council members, Britain, France, US, China, Russia and Germany concluded an agreement with Iran over the weekend to ease the extensive nuclear program in the country in return of an estimated $7 billion-worth of sanctions on Iran’s exports for the coming six months. As part of the six-month agreement, Iran will get access to $4.2 billion in foreign exchange, a Western diplomat confirmed to the press.
The Persian Gulf nation shipped 715,000 barrels a day in October, down from 1.26 million in September, the International Energy Agency confirmed in its monthly report.
The country holds the world’s fourth-largest oil reserves and second-largest natural gas reserves, according to data from the US Energy Information Administration (EIA).
US Inventories
Gasoline supplies are expected to show a climb by 1 million barrels last week, analysts forecasted, while distillate inventories including heating oil and diesel, are predicted to have dropped by 10.03 million barrels.
The American Petroleum Institute is expected to release a separate stockpile report late in the day.
WTI posted its longest streak of weekly losses in 15 years after the US crude inventories rose and production surged.
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