Oil futures traded higher early Tuesday, leaving the front-month contract within striking distance of its highest settlement level since November. Investors are eagerly awaiting more U.S. inflation data and a European central bank decision on interest rates later this week.
- The front-month October West Texas intermediate contract rose 80 cents, or 0.9%, to $88.09 a barrel.
- On Monday, the contract traded as high as $88.15 intraday, the highest for a front-month contract since November.
- November Brent crude, the global benchmark, gained 62 cents, or 0.6%, to $91.27 a barrel.
- Gasoline for October delivery was little-changed at $2.72 a gallon, while October heating oil fell by 0.3% to $3.35 a gallon.
- October natural gas rose by 2.4% to $2.67 per million British thermal units.
A rally in oil prices driven by supply cuts by Saudi Arabia and Russia has slowed this week as concerns about global economic growth have re-emerged, analysts said, citing commentary out of the eurozone.
"The rally has stalled a little over the last week but there are few signs of a corrective move lower at this stage and therefore I suspect we'll hear a lot more $100 oil chat before long," said Craig Erlam, senior market analyst at OANDA, in emailed commentary.
The Organization of the Petroleum Exporting Countries left its predictions for the global oil market largely unchanged Tuesday, continuing to forecast rising demand for oil, despite Saudi Arabia and Russia saying that they would be reducing supply until the end of the year.
A report from the International Energy Agency is due out Wednesday.