Crude oil rose in Asia on Tuesday as President Donald Trump laid out a strategy for keeping troops in Afghanistan after 16 years, though promising a tougher and more pragmatic approach to supporting the government in Kabul and working with partners such as Pakistan.
On the New York Mercantile Exchange, crude futures for October delivery rose 0.19% to $47.62 a barrel, while on London's Intercontinental Exchange, Brent gained 0.14% to $51.73 a barrel.
Ahead, the American Petroleum Institute will release its estimates of crude and refined product stocks last week in the U.S. to be followed on Wednesday by official data from the Energy Information Administration. The figures often diverge.
Analysts expected a 3.375 million barrels draw in crude stocks, a 300,000-barrels decline in gasoline inventories and a 38,000-barrels build in distillates.
Overnight, crude futures settled lower on Monday, as investors continue to lose faith in OPEC’s ability to stem the glut supply amid a producers' meeting to discuss waning compliance with the deal to curb production.
Crude futures started the week on the back foot, despite an OPEC meeting on Monday to discuss possible measures to tackle the fall in compliance with the global pact to cut output, following data in July showing OPEC compliance slipped to its lowest this year.
In May, OPEC and non-OPEC members agreed to extend production cuts for a period of nine months until March, but stuck to production cuts of 1.8 million bpd agreed in November last year.
Also weighing on oil prices were fears of falling demand for crude as the U.S. ‘summer driving season’ nears an end while the number of U.S. rigs drilling for oil continued to fall, suggesting that drillers are scaling back operations in the wake of lower oil prices.
The summer months are traditionally associated with the start of the U.S. summer driving season, which usually spurs heavier refining activity.
Oilfield services firm Baker Hughes (NYSE:BHGE) on Friday, said its weekly count of oil rigs operating in the United States last week fell by five rigs to a total of 763.
The weekly rig count is an important barometer for the drilling industry and serves as a proxy for oil production and oil services demand.