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Oil prices rose early Tuesday as market players focused their attention on the tension around Iran and the prolonged cuts in OPEC, while waiting for a week full of reports and testimonials that could give them a clue to the fundamentals of the oil market and a possible reduction in the rate of the Fed later this month.
On Tuesday at 9:40 am EDT, WTI crude was trading up 0.28% to $ 57.82, while Brent Brude was up 0.31% to $ 64.31 as demand remained worrisome and gains capped.
The prices were supported Tuesday by reports that Russia's oil production in early July is at its lowest level in nearly three years.
"The history of Russia definitely supports the prices today," said UBS oil analyst Giovanni Staunovo.
The market is worried that Russia will not fully comply with the protracted cuts. As a result, the drop in production in early July, as well as the high level of compliance deemed by OPEC, could restore market equilibrium more quickly, Staunovo added.
This week, oil market players, and indeed all, will closely watch the appearance of Fed Chairman Jerome Powell before the House Financial Services Committee and the Senate Banking Panel on Wednesday and Thursday, respectively. should hear that rate cuts remain permanently on the table.
OPEC and the International Energy Agency (IEA) will release their monthly state of the oil market reports this week, Thursday and Friday, respectively, offering new insights into oil demand and supply.
Prior to that, Tuesday and Wednesday, oil prices could find a firmer direction with inventory reports from the US Petroleum Institute (API) later on Tuesday and EIA on Wednesday.
According to ING, according to a Bloomberg survey, crude oil inventories in the United States are expected to be pulled at about 2.55 million barrels over the past week and gasoline inventories at 2.2 million barrels.
By Tsvetana Paraskova for Oilprice.com
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