Oil prices rallied despite the broad based USD strength ahead of the weekly
supply data in the US.
At the time of writing, the Brent futures were up
77 cents or 1.5% higher at USD 49.56/barrel, while WTI futures were up 95 cents
or 2% at USD 47.09/barrel.
The USD index rose 0.4% on Fed rate outlook,
however, oil prices have remained resilient. The traders now look forward to the
weekly inventory data in the US. The first to report is the American Petroleum
Institute, which will be followed by the government data tomorrow released by
the Energy Information Administration (EIA).
As per Reuters poll, the EIA
figure on Wednesday is likely to show oil stockpiles rose by 2.7 million barrels
last week; up for a sixth consecutive week as supply outstrips demand.
The oil rally today seems to have been triggered by expectations that
the slowdown in the major oil exporters may force them to cut production. The
latest Saudi PMI was reported today at record lows as the private sector
suffered from the drop in oil prices.
