Yahoo Finance Crude Oil Prices Settle Flat Ahead of Inventory Data
Investing.com – Crude oil prices settled flat on Tuesday as expectations of a ramp up in U.S. production weighed on sentiment while easing conflict in Northern Iraq between Iraqi and Kurdish forces lessened concerns over potential supply disruptions in the region.
On the New York Mercantile Exchange crude futures for November delivery rose 1 cent to settle at $51.88 a barrel, while on London's Intercontinental Exchange, Brent added 20 cents to trade at $58.03 a barrel.
Crude oil prices came under pressure on renewed oversupply concerns following data indicating that U.S. producers will increase output.
A monthly report from the Energy Information Administration released Monday showed expectations for a rise of 81,000 barrels a day to 6.12 million barrels a day in shale oil production from seven key U.S. shale regions in November.
The recent uptick in crude prices above $50 a barrel is widely viewed as an incentive for shale producers as it’s the price level at which they can ramp up output.
“WTI prices have found some breathing room above the $50 [a barrel level] and the market is increasingly concerned that those levels will trigger rising rig counts and stronger production growth further down the line,” said Robbie Fraser, commodity analyst at Schneider Electric (PA:SCHN).
Also weighing on the crude prices was a fall in geopolitical tensions in Northern Iraq as the threat of ongoing fighting between Iraqi and Kurdish forces eased after Kurdish forces pulled out of disputed areas in region.
"The security premium built into prices from the (Iraqi-Kurdish) situation is in the process of vanishing," said John Kilduff, partner at Again Capital LLC in New York.
Crude prices staged a late-session rebound, however, as traders looked ahead to a fresh batch of crude inventory data expected to show a continued draw in crude oil stockpiles.
U.S. crude inventory data from the American Petroleum Institute on Tuesday as well as a further report from EIA on Wednesday are expected to show a decrease in U.S. crude inventories for the fourth-straight week.
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