NEW YORK, Aug 4 (Reuters) - Global crude prices advanced from multi-month lows on Tuesday, helped by a stock market rally in No. 2 oil consumer China, but abundant supply and a weak demand outlook make crude's rebound unlikely to hold, traders and analysts said.
Brent, the world benchmark for oil, and U.S. crude settled up for the first time in four sessions and after Monday's 5 percent rout triggered by weak factory activity in China.
While the recovery was aided by an overnight rise in Chinese equities - and the short-covering normal after a selloff in oil - the widening gulf between demand for crude and projected supply could negate any rally, traders said.
The U.S. Energy Information Administration, the Paris-based International Energy Agency and the Organization of the Petroleum Exporting Countries will give their monthly updates next week on barrels per day (bpd) of oil needed by the market versus that in storage or under production.
In July, OPEC's output reached the highest monthly level in recent history, a Reuters survey found.
On the U.S. front, the American Petroleum Institute (API) will issue later on Tuesday oil inventory data for last week, ahead of government statistics due on Wednesday.
Analysts expect U.S. crude stockpiles to have fallen last week, but the API could still surprise the market with a rise.
View Full Article
Copyright 2017 Thomson Reuters. Click for Restrictions.
WHAT DO YOU THINK?
Click on the button below to add a comment.
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Most Popular Articles