Article by ForexTime
Oil prices bounced back above $37 a barrel on Tuesday. Oil futures took back much of the ground lost in Monday’s rout when both Nymex and Brent fell more than 3% after weak data out of China and Japan stoked concerns about demand.
Due to strengthening seasonal demand in coming weeks, on expectations of colder weather coming, oil prices were helped higher.
February Brent crude on London’s ICE Futures exchange added $1.17, or 3.2%, to finish at $37.79 a barrel. The global benchmark is down more than 15% in December and is on track for a 2015 drop of more than 34%. On the New York Mercantile Exchange, light, sweet crude futures for delivery in February rose $1.06, or 2.9%, to finish at $37.87 a barrel. The U.S. benchmark remains down more than 9% since the end of November and is on track for a 2015 decline of nearly 29%.
However, further upside in oil prices may be limited due to record robust production levels, and expectations that the cold weather that is forecast for the first part of next month (in the U.S.) will last for less than a week.
Investors will look at U.S. official crude stockpiles and production data to be released on Wednesday, for more clues into the direction of oil prices.
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