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Oil futures moved modestly higher Tuesday, but analysts said upside was limited ahead of a potential release of crude from the U.S. Strategic Petroleum Reserve.
That’s put the spotlight on the U.S. Energy Information Administration’s monthly Short-Term Energy Outlook, which is typically not a big market mover. Analysts said the report is seen playing a role in a decision by the Biden administration on whether to tap the SPR.
“The focus is likely to be on the EIA’s forecasts for gasoline demand and gasoline prices. In its last report a month ago, the EIA was still predicting that pump prices would gradually decline until the end of 2022 and that gasoline would cost a good $3 per gallon in December,” said Carsten Fritsch, commodity analyst at Commerzbank, in a note. “Prices have climbed further in the meantime, however.”
West Texas Intermediate crude for December delivery
CL00,
CLZ21,
rose 34 cents, or 0.4%, to $82.27 a barrel on the New York Mercantile Exchange. January Brent
BRN00,
BRNF22,
the global benchmark, gained 26 cents, or 0.3%, to $83.69 a barrel on ICE Futures Europe.
Crude was lifted Monday, with support tied to passage late last week of a $1 trillion infrastructure package by the U.S. Congress and Saudi Arabia’s decision to lift prices on oil exports.
