US crude oil reserves with first growth in two months

The crude oil prices rebounded from losses on Tuesday, as the market applauded the news that stocks of crude oil in USA fell for the first time in two months. The investors are now waiting for a weekly report from the Energy Information Administration (EIA) for the US crude oil reserves. The WTI crude oil futures with April delivery added 1.21% to 48.88 USD per barrel, while the London-traded Brent oil contracts with April delivery rose with 0.52% to 56.69 USD per barrel.

The US Energy Department reported that the price of WTI will likely be average 52.15 USD this year, not 55 USD as was forecast last month. The reason is that world production continues to outpace demand by nearly 1 million barrels per day, much of the growth stems from producers outside OPEC.

Meanwhile, the American Petroleum Institute said supplies of crude oil in USA decreased by 404 thousand barrels to 439.4 million barrels for the week that ended on 6th March. The analysts had expected an increase of 4.4 million barrels. However, the US crude oil reserves in the distribution center in Cushing rose by 2.2 million barrels.

Later today expect data on EIA, as analysts predict oil reserves to increase by 4.75 million barrels, which will lead to a new historical record overseas. The ICE dollar index is still trading near 12-year high against the prospects for an early rise in interest rates by the Federal Reserve. The gauge added 0.09% to 98.710 points. Each trend of appreciation of USD has the potential to limit the demand for dollar-denominated commodities, such as oil, making them less affordable for holders of other funds.