On Tuesday US crude futures declined, as market players awaited fresh data on US stockpiles of crude and refined products to estimate the strength of demand in the United States.
On the New York Mercantile Exchange, crude oil
for June delivery declined 10 cents, or 0.18%, to trade at $58.83 a
barrel during European morning hours. Futures held in a tight range
between $58.66 and $59.04.
On Monday, Nymex oil prices shed 22 cents, or 0.37%, to end at $58.93. New York-traded oil prices touched a five-month high of $59.90 on May 1.
The American Petroleum Institute will issue its inventories report later in the day, while Wednesday’s government report could show crude stockpiles rose by 1.6 million barrels in the week ended May 1.
Total U.S. crude oil inventories rose by 1.9 million barrels last week to 490.9 million barrels, the most in at least 80 years, even as drilling activity dropped.
The amount of rigs drilling for oil in the U.S. fell by 24 last week to
679, the 21st straight week of declines and the lowest level since
September 2010, industry research group Baker Hughes said.
Markets have been closely watching the shrinking rig count in recent months for signs it will eventually reduce the glut of crude flowing into the market.
U.S. oil futures have been well-supported in recent weeks amid growing expectations that U.S. shale oil production has reached its peak and may start falling soon, as the collapse in rigs drilling for oil.
On the ICE Futures Exchange in London, Brent oil for June delivery declined 15 cents, or 0.23%, to trade at $66.30 a barrel, as investors locked in gains from a recent rally.
A day earlier, London-traded Brent futures rose to $67.10, a level not seen since December 9, before closing at $66.45, down 1 cent, or 0.02%.
The spread between the Brent and the WTI crude contracts stood at $7.47 a barrel, compared to $7.52 by close of trade on Monday.
