The following is an excerpt from BARANI KRISHNAN AND DMITRY ZHDANNIKOV | December 29, 2015 | reuters.com |
Oil prices jumped about $1 a barrel on Tuesday, as prospects of colder weather in coming weeks inspired buying a day after prices slid 3 percent, but slowing global demand and abundant supplies from OPEC members kept energy markets bearish.
Global oil benchmark Brent and U.S. crude's West Texas Intermediate (WTI) futures rose more than 2 percent each.
The two benchmarks have generally been in an uptrend over the past week as weather forecasts indicated the United States may get some cold winter temperatures following an unusually balmy autumn.
Expectations of a drawdown last week in U.S. crude inventories fed the rally. A Reuters poll suggested that stockpiles fell 2.5 million barrels last week ahead of inventory reports from the American Petroleum Institute on Tuesday and the government-run Energy Information Administration on Wednesday.
Brent was up $1.02 at $37.64 a barrel by 10:58 a.m. EST (1558 GMT). WTI was up 96 cents at $37.77, after reaching as high as $37.88.
U.S. heating oil, also known as Ultra Light Sulfur Diesel (ULSD), rose nearly 4 percent to above $1.13 a gallon, leading the energy complex higher and rising with natural gas, another heating fuel.
For more visit: reuters.com