Oil hov­ers be­low $86 a bar­rel ahead of US sup­ply re­ports

The Pak Banker - - International3 -

SINGAPORE: Oil prices hov­ered be­low $86 a bar­rel Tues­day in Asia as traders looked to U.S. sup­ply re­ports for clues about the strength of de­mand for crude.

Bench­mark oil for Jan­uary de­liv­ery was down 8 cents to $85.65 a bar­rel at late af­ter­noon Singapore time in elec­tronic trad­ing on the New York Mer­can­tile Ex­change. The con­tract rose $1.97 to set­tle at $85.73 on Mon­day.

Crude in­ven­to­ries likely fell 1.5 mil­lion bar­rels last week, ac­cord­ing to an­a­lysts sur­veyed by Platts, the en­ergy in­for­ma­tion arm of McGrawHill Cos. The Amer­i­can Petroleum In­sti­tute plans to an­nounce its in­ven­tory num­bers later Tues­day while the En­ergy Depart­ment's En­ergy In­for­ma­tion Ad­min­is­tra­tion re­ports its weekly sup­ply data Wed­nes­day.

"We still see fur­ther up­side for oil prices as a re­sult of ex­tended U.S. liq­uid­ity, strong emerg­ing mar­ket de­mand, and a nascent fall in U.S. in­ven­to­ries al­beit from high lev­els," Cit­i­group said in a re­port.

Citi said it ex­pects oil prices to av­er­age $88 dur­ing the next three months and $93 be­tween six and 12 months from now. Crude prices rose Mon­day de­spite the dol­lar gain­ing against the euro. Oil nor­mally falls as the dol­lar strength­ens since crude be­comes more ex­pen­sive for in­vestors with other cur­ren­cies. "Oil is be­com­ing a safe haven," Cameron Hanover said in a re­port. -Ap

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