Brent oil rose on Tuesday backed by strong gasoline and heating oil prices that were boosted by persistent cold weather in the U.S. and expectations of another large draw in distillates.
Frigid weather supported heating oil prices and U.S. RBOB futures saw some strength from traders unwinding the spread trade between heating fuel and gasoline, one trader said.
Markets showed little reaction to U.S. Federal Reserve Chair Janet Yellen's remarks that she will not make any abrupt changes in the U.S. central bank's monetary policy, and that the Fed will continue to reduce its stimulus.
"Yellen's comments were not any surprise to the market," said Andy Lipow, president of Lipow Oil Associates in Houston.
"Brent is getting its support from strength in products."
U.S. crude oil held around $100 per barrel, supported by a strong U.S. equities market but capped by a stronger U.S. dollar.
Brent crudewas last trading up 17 cents at $108.80 a barrel at 11:53 a.m. EST (1653 GMT), after settling 94 cents lower in the previous session.
U.S. crudetraded down 16 cents at $99.90.
U.S. ultra-low sulfur diesel (ULSD)rose nearly 3 cents to $3.0258 per gallon. Gasoline was up 2.63 cents to $2.7511 per gallon.
U.S. crude was still close to a six-week high, supported by expectations of a drop in distillate inventories last week due to freezing weather across the country.
Distillate stocks, including heating oil and diesel fuel, are expected to drop by 2.3 million barrels in the week to Feb. 7, according to analysts in a Reuters poll. U.S. crude oil inventories are expected to rise by 3 million barrels.
The American Petroleum Institute will release its oil inventory data at 4:30 p.m. EST (2130 GMT) on Tuesday and the U.S. Energy Information Administration will release its weekly inventory report to at 10:30 a.m. EST on Wednesday.
Brent's gains were capped by expectations of a further increase in Libyan output. The North African nation's current production is around 600,000 barrels per day (bpd), up from its average rate in January.
Source: Reuters
Frigid weather supported heating oil prices and U.S. RBOB futures saw some strength from traders unwinding the spread trade between heating fuel and gasoline, one trader said.
Markets showed little reaction to U.S. Federal Reserve Chair Janet Yellen's remarks that she will not make any abrupt changes in the U.S. central bank's monetary policy, and that the Fed will continue to reduce its stimulus.
"Yellen's comments were not any surprise to the market," said Andy Lipow, president of Lipow Oil Associates in Houston.
"Brent is getting its support from strength in products."
U.S. crude oil held around $100 per barrel, supported by a strong U.S. equities market but capped by a stronger U.S. dollar.
Brent crude
U.S. crude
U.S. ultra-low sulfur diesel (ULSD)
U.S. crude was still close to a six-week high, supported by expectations of a drop in distillate inventories last week due to freezing weather across the country.
Distillate stocks, including heating oil and diesel fuel, are expected to drop by 2.3 million barrels in the week to Feb. 7, according to analysts in a Reuters poll. U.S. crude oil inventories are expected to rise by 3 million barrels.
The American Petroleum Institute will release its oil inventory data at 4:30 p.m. EST (2130 GMT) on Tuesday and the U.S. Energy Information Administration will release its weekly inventory report to at 10:30 a.m. EST on Wednesday.
Brent's gains were capped by expectations of a further increase in Libyan output. The North African nation's current production is around 600,000 barrels per day (bpd), up from its average rate in January.
