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Oil prices bounce back from 2-month lows on expectations inventory data will show drop

Oil prices bounce back from 2-month lows on expectations inventory data will show drop

Oil prices bounced back from two-month lows Wednesday, a day ahead of the release of a weekly U.S. petroleum supply snapshot expected to show crude and gasoline stocks fell.
Light, sweet crude for October delivery rose 11 cents to US$68.71 a barrel in Asian electronic trading on the New York Mercantile Exchange, midmorning in Singapore.
The contract fell 58 cents Tuesday to settle at US$68.60 a barrel on the New York Mercantile Exchange, the lowest settlement price since June 13.
Gasoline futures also recovered some Wednesday after dropping to a six-month low the previous day as the passing of the U.S. Labor Day holiday signaled the end of the summer driving season. Gasoline futures rose 1.65 cents to US$1.6630 a gallon (3.8 liters).
The U.S. Energy Department will release its midweek domestic fuel inventories report on Thursday, which analysts expect to show crude oil and gasoline stocks fell in the week ended Sept. 1.
According to a Dow Jones Newswires poll of analysts, crude oil stocks were likely to fall by 1.1 million barrels, on average. Gasoline inventories were predicted to decline by about 600,000 barrels while distillate stocks, which include jet fuel and heating oil, were tipped to rise by 1.2 million barrels.
Oil prices in recent sessions have fallen on the lack of developments in the standoff between the United Nations and Iran, who defied the U.N.'s deadline to stop enriching uranium that could be used to produce nuclear weapons.
Also supporting the fall was Chevron's discovery of oil supplies _ the company said Tuesday it found a 300-square-mile (768-square-kilometer) region in the Gulf of Mexico where its test well sits could hold between 3 billion and 15 billion barrels of oil and natural gas liquids. The pool of oil and gas could raise U.S. reserves by as much as 50 percent.
That, along with a more-subdued forecast for this year's Atlantic hurricane season, extended a tumble in the energy markets that began Friday, after the United Nations failed to impose sanctions on Iran for its refusal to cease enriching uranium.
In other trading, heating oil prices rose 0.42 cent to US$1.9405 a gallon. Natural gas prices fell 8.9 cents to US$5.95 per 1,000 cubic feet.


Updated : 2021-10-27 02:25 GMT+08:00