Oil Prices Rebound Ahead of Inventory Data

West Texas Intermediate (WTI) crude oil futures for delivery in June were 0.6% higher at $49.14 per barrel during Tuesday’s pre-market trading session while Brent oil futures for delivery in July were up by 0.9% $51.96 per barrel.

The pre-bell price gains come the morning after a steep sell-off in oil and coincide with a fractionally lower greenback. On Monday, WTI and Brent crude had finished 0.9% and 0.4% lower, respectively. As a dollar-denominated commodity, a cheaper buck tends to make oil more affordable for international buyers. The Dollar Index, which tracks the value of the US currency against a basket of foreign currencies, was 0.01% lower at the time of writing.

Also feeding into oil trading sentiment is the upcoming release of data from the American Petroleum Institute (API), which is scheduled to release its US oil inventory projections for the week ended April 21 later on Tuesday. The overwhelming trend over the past three months has been one of increasing volume with US stockpiles however last week government data showed a surprise decline, with inventories falling by 3.6 million barrels to 528.7 million barrels.

By Sonia Taylor