MANTHANTIPS:- Crude retreats from 2-week highs, ahead of API inventory report
Crude futures see-sawed on a choppy, volatile day of trading, retreating from two-week highs ahead of the American Petroleum Institute’s weekly crude inventory report on Tuesday evening after the close of trading. On the New York Mercantile Exchange, WTI crude for September delivery traded between $42.51 and $43.48 a barrel before closing at $42.66, down 0.36 or 0.84% on the session. At session-highs, the front month contract for U.S. crude hit its highest level since July 25, the last time it traded above $44 a barrel. On the Intercontinental Exchange (ICE), brent crude for October delivery wavered between $44.80 and $45.73 a barrel, before settling at $44.87, down 0.52 or 1.15% on the day. Despite a relief-rally from 3-month lows at the start of last week, crude futures have still tumbled approximately 15% from 10-month highs in mid-June when both the U.S. and international benchmarks of crude eclipsed $50 a barrel. Energy traders will receive a clearer picture of the supply-demand balance on U.S. markets when the API releases its latest crude stockpile on Tuesday night following close of markets. Separately, Wednesday’s government report could show that crude inventoriesnationwide fell by 1.0 million barrels for the week ending on August 5. Over the previous week, U.S. crude stockpiles unexpectedly rose by 1.4 million barrels defying analysts’ expectation for a 1.4 million draw. At 522.5 million barrels, U.S. crude oil inventories are at historically high levels for this time of year.