Oil Gains, Crude Inventories Fall

Oil made steady gains on Tuesday after reports that China is going to reduce its demand for oil.
Brent crude rose to $73.63 a barrel gaining 57 cents, West Texas Instrument gained 86 cents at $68.75.

Analyst at Price Futures Croup in Chicago, Phil Flynn said that following China’s plan on increased infrastructure spending will reduce the demand for oil and has helped support oil prices.

According to Gene McGillian VP of market research at Tradition Energy in Connecticut who said that buyers are coming back, after the 8 percent decline and multi-year highs.

He also said that the easing of production losses and the increase of crude supplies from Saudi Arabia, Russia and other Petroleum Exporting Countries have attributed to the fall in crude oil benchmarks.
Fears by markets of disruption in supply in the Middle East and trade tensions between the U.S, China and Europe has also driven up the price of oil.

Sanctions in Iran

As the November deadline approaches for countries to cut imports of oil from Iran, Saudi Arabia together with some other producers are ramping up production.

U.S. Crude

Genscape, data supplier say that market sentiment is that the stockpiles of crude at Cushing, Oklahoma are expected to fall for a 10th consecutive week. Last week there was a fall of 3.2 million barrels per week in U.S. crude stocks according to a survey.

Later in the day the American Petroleum Institute are scheduled to release data of its inventories for the last week.

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