US Crude Near Flat Before Inventory Report
NEW YORK, May 6 (Reuters) - U.S. crude futures settled nearly unchanged on Tuesday, paring gains toward the close as traders took profits ahead of a weekly inventory report, while Brent prices fell, pressured by resuming Libyan supply.
U.S. commercial crude inventories were forecast by a poll of analysts to have risen 1.5 million barrels last week, with stockpiles potentially rising above 400 million barrels for the first time on record.
Stocks at the Cushing, Oklahoma, delivery point for U.S. crude have dropped in the last three weeks, however, as new infrastructure relieves recent bottlenecks at the key oil hub, which has provided some support for prices.
U.S. oil rose 2 cents to settle at $99.50 a barrel, after hitting a mid-session high of $100.42. Brent crude fell 66 cents to 107.06 per barrel.
Some analysts noted U.S. crude oil prices have traded in a range between the 200-day moving average of $100.57 per barrel and 100-day moving average of $99.35.
"We caught support on the 100-day and hit a wall on the 200-day," said Oliver Sloup, director of managed futures at iitrader.com. "There was some profit-taking ahead of the inventory report."
The American Petroleum Institute (API), an industry group, is due to issue its weekly inventory report for U.S. crude on Tuesday at 4:30 p.m. EDT (2030 GMT), while the U.S. Energy Information Administration (EIA) will issue its official report on Wednesday.
EIA data wiped off nearly 2 percent from U.S. oil futures over two days last week after its report showed U.S. crude stocks hit a record high in the week to April 25, led by another steep increase on the Gulf Coast.
Meanwhile, the United States trade deficit narrowed in March as exports rebounded to the second-highest level on record, which was a supportive signal for U.S. crude.
A smaller trade deficit can bolster growth because it means American companies are earning more on their overseas sales.
The U.S. dollar hit an 8-week low against the euro, which supports U.S. oil and other commodities priced in the greenback as a weak dollar makes them cheaper for traders.
Ukraine, Libya
In the east and south of Ukraine, Tuesday was quieter than recent days, but this is the deadliest week since the separatist uprising began, which has helped put a floor under oil prices, traders said.
"The market is balancing a weak fundamental picture against the worry that we could see a disruption in Russian supplies," said Gene McGillian, analyst at Tradition Energy in Stamford, Connecticut.
Libyan exports have pressured Brent oil prices in recent weeks even though the vital southern El Sharara oilfield remained closed and new protests shut the Zultun and Raquba oilfields.
Oil output in Libya now totals just 250,000 barrels per day, compared with around 1.4 million bpd in mid-2013. Government officials said they hope to reopen key oilfields within a week.
(Additional reporting by Edward McAllister in New York, Peg Mackey in London and Jacob Gronholt-Pedersen in Singapore; Editing by Susan Thomas, Keiron Henderson, Peter Galloway and Meredith Mazzilli)
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