Crude oil futures ended higher on Tuesday, as concerns about possible supply shortage resurfaced due to rising tension between the U.S. and Iran.
Traders were looking ahead to a report on U.S. crude inventories from the American Petroleum Institute, due at 4:30 PM ET today. It is widely expected that oil stockpiles may have declined last week.
On Wednesday, the Energy Information Administration’s report on U.S. crude supplies is due.
Crude oil futures for September delivery settled at $68.52 a barrel, gaining $0.63 or 0.9%, on the New York Mercantile Exchange.
On Sunday, the U.S. President Donald Trump warned Iranian President Hassan Rouhani that Iran would suffer the consequences, if it ever threatened the U.S. again, after Rouhani commented that U.S.’ hostile policies would lead to
“the mother of all wars.”
Meanwhile, trade war concerns linger after Trump’s comments last week that his administration was looking at imposing tariffs on over $500 billion worth of Chinese goods to the U.S. in the event of China failing to back down on its trade policies.
Crude exports from Saudi Arabia are expected to drop by around 100,000 barrels a day next month as the kingdom is keen an ensuring there is no oversupply in the market.
Last Friday, Baker Hughes had said that the number of U.S. oil rigs fell by 5 to 858 in the week.