Oil prices moved higher on Tuesday as traders eye weekly U.S. crude inventory data.
Global benchmark Brent crude for February delivery was rising by approximately 1.5%, trading at around $55.73, while West Texas Intermediate futures were up by 0.9% to $52.59 by 9:30 a.m. ET.
Analysts are anticipating a 2.4 million-barrel drawback for the U.S. Energy Information Administration's (EIA) weekly domestic crude inventory report, which is due out Wednesday morning. Another decline in inventories this week would mark the fifth straight week for a drawback in stockpiles, which could indicate that the oversupplied global oil market is starting to shrink.
Investors will get an idea if that forecast is close when the American Petroleum Institute (API) reports crude inventories Tuesday evening -- but the API data doesn't always line up with the EIA report.
Last week, the EIA reported that crude inventories fell by 2.6 million barrels -- a greater than expected decrease in stockpiles. Oil prices rebounded on the report as analysts had been forecasting a 1.5-million-barrel draw for the week ending Dec. 9. The EIA data also offset bearish numbers from the API, which showed crude oil stockpiles growing by 4.7 million barrels.
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