Commodity Daily News

Oil Remains Steady Ahead of U.S. Supplies Data

Crude Oil prices rose slightly on Tuesday after U.S. stock markets bounced off their lows amid optimism that the government's plan to unburden banks of soured assets could help shore up the U.S economy. The gains were limited however, as dealers awaiting a round of U.S. Crude Oil Inventories data that analysts expected would show an increase in Crude stockpiles. Crude Oil rose to settle at $53.98 a barrel after hitting a 3 month high of $54.20 earlier in the day. Analysts said they expected Oil inventory data to be released by the U.S. Energy Information Administration on Wednesday to show a 1.2 million barrel build in crude stockpiles.

Energy demand in the world's biggest consumer economy has been hard-hit by the economic meltdown, buffering inventory levels as global consumption has been shrinking for the first time in a quarter century. Oil prices have climbed from under $33 last December, partly due to aggressive supply cuts from the Organization of Petroleum Exporting Countries (OPEC), but remain almost $100 below last summer's peak. OPEC agreed to hold output targets steady at its meeting in Vienna on March 15th due to concerns that higher prices may harm an ailing global economy. Ministers pledged to tighten compliance with record cutbacks agreed on last year to bolster Crude Oil prices.