Crude Oil Futures Gain on Tuesday ahead of OPEC Meeting

Crude oil futures gained on Tuesday as investors were optimistic on upcoming meeting of OPEC. Investors expected that OPEC member countries would go for an increase in cartel’s official output targets. Moreover weakening greenback also resulted in attraction for crude oil.

Crude oil futures contract for July delivery gained 0.1 percent or $0.08 to $99.09 per barrel on Tuesday’s session of New York Mercantile Exchange. Whereas on Monday the respective contract reached its lowest since May 23rd, 2011.

Analyst Matt Smith from Summit Energy in Kentucky commented, “We’ve had a sea change in the last couple of days,” he further added, “Now it looks they are looking to raise it and that’s filtering in through oil prices.”

US Department of Energy’s Energy Information Association EIA has disclosed more demand for crude oil in its recent short term outlook. According to EIA demand for crude oil will grow by 1.7 million barrels per day in 2011. EIA also forecasted that by 2012 demand will increase by 1.6 million barrels per day globally. According to EIA estimated supplies from non OPEC countries will surge to 590,000 barrels per day while supplies from OPEC members will decrease by 370,000 barrels per day.

It is also estimated that by the end of 2012 half of the Libya’s oil production will be resumed.

Among other commodities and energy products, gasoline futures contract for July delivery gained 1.4 percent or $0.04 to $2.99 per gallon while heating oil futures contract for July delivery jumped 2 percent or $0.06 to $3.08 per gallon.

Natural gas futures contract for July delivery slightly gained to $4.83 per million British thermal units.

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