Crude oil prices remain under pressure from oversupply
Market outlook remains bearish as supply still exceeds demand and due to worries the dollar will strengthen when the Fed eventually raises rates.
Reuters Last Updated: November 3, 2015 | 11:33 IST
Internationally traded Brent was at $48.78, almost unchanged from its last close and under pressure. Photo: Reuters
US crude futures edged up early on Tuesday, but the market outlook remains bearish as supply still exceeds demand and due to worries the dollar will strengthen when the US Federal Reserve eventually raises interest rates.
Benchmark US crude futures were trading at $46.23 per barrel at 9:24 pm, up 9 cents from their last settlement after falling in the previous session due to an expected rise in stockpiles.
Internationally traded Brent was at $48.78, almost unchanged from its last close and under pressure from Russian production hitting a post-Soviet peak while China's demand outlook weakened.
"Crude continues to remain under pressure due to emerging supply-side news and slowing Chinese demand. Russian oil output broke a post-Soviet record in October for the fourth time this year. News from Iran is also painting a negative picture," ANZ bank said in a morning note.
Meanwhile, Gulf oil producers are delaying some field maintenance until next year to keep production high and reduce costs as they forecast ongoing low oil prices in 2016.
In North America, US crude oil stockpiles likely rose by 2.7 million barrels last week, growing for a sixth consecutive week, a Reuters poll showed. Industry group the American Petroleum Institute (API) will issue its preliminary inventory data on Tuesday before official numbers on Wednesday from the US government.
At the same time, traders are keeping an eye on US monetary policy as a rise in American interest rates would likely push up the dollar against other currencies, making oil imports more expensive in some other countries.
"With the focus on US economic data this week, anything supportive of the Fed raising rates could see commodity markets come under some pressure," ANZ said.