Oil Prices Edge Up Ahead Of Crude Inventory Reports

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Crude oil futures settled higher on Tuesday, with traders making cautious moves, weighing crude demand and supply prospects ahead of weekly inventory data.

On the data front, Industry and government reports due later in the week are expected to show that US crude stockpiles dropped 3.6 million barrels, according to a preliminary Reuters poll.

The West Texas Intermediate for August delivery climbed 17 cents to settle at 57.83 USA dollars a barrel on the New York Mercantile Exchange, while Brent crude for September delivery rose 5 cents to close at 64.16 dollars a barrel on the London ICE Futures Exchange.

Brent rose 16 cents to $64.27 a barrel by 10:06 a.m. CST (1506 GMT).

Iran said on Sunday it will shortly boost its uranium enrichment above a cap set by a landmark 2015 nuclear deal, prompting a warning "to be careful" from US President Donald Trump, who pulled out of the pact a year ago. The confrontation has brought the United States and Iran close to conflict, with U.S. President Donald Trump calling off air strikes last month minutes before impact. The nation is the world's fourth-largest user of crude.

Oil prices steadied on Monday as tensions over Iran's nuclear program were tempered by global economic growth concerns and consequently oil demand. It should be noted that the economic powerhouses are also the world's two largest oil consumers.

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Oil prices were propped up as market participants were anxious that the heightening geopolitical tensions in the Middle East may disrupt oil flows. "There has been no progress in the U.S".

Iran's Oil Minister Bijan Namdar Zanganeh said on Sunday that Iran is not only no threat to the world's energy security but also the biggest guarantor of stability and energy security in the region, Shana reported.

Meanwhile, expectations of a rate cut by the U.S. Federal Reserve this month dampened following the release of a better-than-expected U.S. employment report last Friday. -China trade war. In its June Short-Term Energy Outlook (STEO), the EIA cuts its oil demand growth forecast by 200,000 bpd to 1.2 million bpd for 2019. This follows discovery of contaminated Urals crude that affected the Druzhba pipeline to Europe.

Citing analysts, Reuters said the jobs report was a tailwind for the oil markets.

Although domestic crude production in the USA continues to reach new highs, with the EIA stating that output passed 12 million barrels per day for the first time ever back in April, the number of rigs drilling for oil has actually gone down last week, falling to 788 as opposed to the 888 seen in November 2018.