Despite worries about demand outlook for crude due to U.S.-China trade dispute and on recent data showing a notable jump in U.S. crude stockpiles, oil futures ended higher on Tuesday, rising for a fourth successive session.
Traders were looking ahead to the data on U.S. crude stockpiles. While the American Petroleum Institute will come out with its weekly crude stock in U.S. later in the day, the official data from the Energy Information Administration is due on Wednesday.
Traders may also have been figuring out the likely impact of U.S. sanctions on Iranian oil, that come into full force in November. The market was digesting an announcement from the U.S. Department of Energy that it would offer 11 million barrels of crude for sale from the nation’s Strategic Petroleum Reserve ahead of financial sanctions against Iran, beginning in November.
Crude oil futures for October, the most actively traded contract, ended up $0.42, or 0.6%, at $65.84 a barrel on the New York Mercantile Exchange.
Crude oil futures contracts for September expired at $67.35 a barrel, gaining $0.92, or 1.4%, over previous session’s close of $66.43 a barrel.
Meanwhile, ahead of U.S.-China trade talks in Washington, U.S. President Donald Trump on Monday said in an interview that he doesn’t expect much progress in the talks for ending the dispute with China.