FX.co ★ Supply Fears Drive Crude Oil Prices To 10-month High

Crude oil prices extended gains on Tuesday, touching levels last seen in November 2022, driven overwhelmingly by fears of a supply deficit. Saudi Arabia and Russia extending supply cuts to the end of the year continued to haunt market sentiment.

The Dollar's mild weakness also supported crude oil prices. The Dollar Index, a measure of the Dollar's relative strength against a basket of 6 currencies slipped 0.24 percent overnight to 104.95.

Industry level crude oil inventory data is slated for release later in the day by the American Petroleum Institute. Markets expect the crude oil inventories in the U.S. to shrink by 2.67 million barrels in the week ended September 15. Crude oil inventories had increased by 1.17 million barrels in the previous week.

Official data by the Energy Information Administration due on Wednesday is also expected to show a decline of 2.7 million barrels in crude oil inventories during the week ended September 15. Data from the EIA had shown U.S. crude oil inventories rising by 3.95 million barrels in the week ended September 8.

Brent Oil Futures for November settlement which had finished previous day's trading at $94.43, ranged between $95.33 and $93.79 on Tuesday. It is currently trading at $94.83, having gained 0.42 percent from the previous close.

West Texas Intermediate Crude Oil Futures for November settlement added 0.62 percent from the previous close of $90.58 to trade at $91.14. Prices ranged between a high of $91.68 and a low of $90.89.