Crude-oil futures remained subdued on Tuesday with prices moving in a narrow trading range.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in November CLX4, +0.11% traded at $90.27 a barrel, down 7 cents in the Globex electronic session. November Brent crude LCOX4, -0.02% on London’s ICE Futures exchange fell $0.08 to $92.71 a barrel.
Nymex WTI crude had settled at its second-lowest level this year in floor trade on Monday and is down over 8.2% year-to-date, while Brent crude is down around 16.25% year-to-date.
“Global crude oil prices continue to fall sharply amid ample supply and weak demand combined with an increasing confidence that turmoil in Iraq is unlikely to disrupt supplies,” analyst Phin Ziebell at National Australia Bank said in a report.
He said liquid fuel demand has been subdued for the last several months, which is reflected in higher oil inventories and lower refinery runs, and expects Brent crude to average $103 a barrel in 2015.
U.S. oil markets will be watching initial stockpile data due from the American Petroleum Institute, a trade body, later Tuesday, with expectations of an increase in total crude-oil inventories.
The more closely-watched inventory data from the U.S. Energy Information Administration is due on Wednesday, and will help indicate the level of U.S. oil demand.
The WTI crude contract for November delivery rose slightly after opening below $90 this week but an upward swing in prices is expected to be met with strong resistance, analyst Howie Lee at Phillip Futures said.
He said WTI prices are likely to stop rising as it will be difficult for them to go past the $90.62 mark today, and are likely to stick in the $90 range.
Nymex reformulated gasoline blendstock for November RBX4, -0.35% -- the benchmark gasoline contract-- fell 62 points to $2.4070 a gallon, while November diesel traded at $2.6211, 2 points lower.
ICE gasoil for October changed hands at $786.50 a metric ton, up $7.75 from Monday’s settlement.
