Crude Oil Futures Rise on Lower Supply Expectations

Crude oil futures rise on lower supply expectations

NEW YORK, July 25 (Xinhua) — Crude oil prices rose Monday as traders speculated that the crude oil supplies might decline for last week.

On the New York Mercantile Exchange, light, sweet crude oil future for September delivery gained 35 cents to end at 59 dollars a barrel. Meanwhile, on London’s International Petroleum Exchange, the September Brent crude-oil futures contract climbed 28 cents to settle at 57.86 dollars per barrel.

On Monday, expectations of a decline in US commercial crude inventories for the fourth straight week, reflecting supply disruptions from storms in the Gulf of Mexico, pushed oil prices higher.

However, analysts remained divided about the short-term trends. Many analysts said prices were going down to 50 dollars a barrel, while others insisted that they were going up to 65 dollars per barrel.

Buying spree for heating oil contracts also gave the market a strong boost.