NEW YORK—Oil prices turned positive Tuesday, after falling to
multi-month intraday lows, ahead of weekly U.S. inventory data.
Both Brent, the global benchmark, and the U.S. oil benchmark
recently entered bear markets—defined as a 20% drop from a recent
high—on investor worries that the markets would remain oversupplied
through the end of the year. Production is still robust, despite
large spending cuts by oil companies, and analysts say demand could
decline after the busy summer-driving season ends.
The U.S. oil benchmark recently traded up 75 cents, or 1.6%, to
$48.14 a barrel on the New York Mercantile Exchange, after falling
to as low as $46.68 a barrel in overnight trading.
Brent crude for September delivery recently rose 34 cents, or
0.6%, to $53.81 a barrel on ICE Futures Europe.
Traders are waiting on weekly inventory data from the U.S.
Energy Information Administration. While analysts are still
completing their estimates, some expect the agency to report that
domestic crude-oil inventories shrank last week.
Oil prices rallied earlier in the spring on expectations that
the oversupplied global market will come into balance later in the
year. But strong crude production by the Organization of the
Petroleum Exporting Countries coupled with persistently high U.S.
output have soured sentiment in recent weeks.
Diesel futures recently rose 1.5% to $1.6187 a gallon, after
falling to a six-year low on Monday.
Gasoline futures traded down 0.1% at $1.8183 a gallon.
Write to Nicole Friedman at nicole.friedman@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires