SINGAPORE, Nov 26: U.S. Crude futures rose in early Asian trade on Tuesday as supply concerns crept back, with investors judging that the historic deal between Iran and world powers would not result in an immediate increase in shipments from the OPEC member.
The deal halts Iran’s most sensitive nuclear activity and suspends some sanctions by the United States and the European Union, but caps exports from the country at the current level of about 1 million barrels per day (bpd).
That means a fragile global oil supply-demand balance as markets are also coping with losses in exports from Libya.
U.S. Crude had risen 37 cents to $94.46 a barrel by 0021 GMT, after settling 75 cents lower. Brent recouped most of its intraday losses and ended 5 cents down, after losing as much as $3 during the day.
FUNDAMENTALS
* Iran is quietly mobilising more ships to store and transport oil, aiming to keep its fields working and mitigate losses of several billion dollars a month from sanctions which remain in place for at least another six months, trade sources familiar with the matter said.
* Asia’s top oil refiner Sinopec has cut production for at least two of its refineries in China’s eastern Shandong province after a pipeline blast which killed 55 people on Friday, industry sources said.
* Libyan troops struggling to establish control across the country clashed with militants in the eastern city of Benghazi on Monday and at least nine people were killed in the fighting, officials said.
* U.S. Commercial crude oil and gasoline inventories were forecast to have increased last week, while distillate stockpiles were seen down, a preliminary Reuters poll of analysts showed on Monday.
* One of the most popular trading bets in oil markets, based on attempts to predict price differences between European and U.S. Oil benchmarks, is proving to be one of the trickiest as funds suffer losses after sky-high gains earlier this year.
* Contracts to buy previously owned U.S. Homes hit a 10-month low in October, but a strong rebound in services sector activity early this month suggested some resilience in the economy as the year winds down.
MARKETS NEWS
* The euro recoiled from a four-year high against the yen on Tuesday and retreated on the dollar as dovish comments from European Central bank officials deflated the high-flying currency.
(agencies)
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