WTI gains ahead of inventory data

Crude oil prices were higher Tuesday as the US dollar weakened in relation to the euro and ahead of Wednesday’s new US inventories data from the Energy Information Administration, which are expected to say that crude oil stockpiles fell but gasoline and distillates levels were up last week.

With a minute or two of the close of trade in New York, October contracts for West Texas Intermediate crude were $1.86 higher to $71.57 per barrel on the New York Mercantile Exchange, while November contracts, which will become the front-month contract after the close of trade today, added $1.67 to $71.60 per barrel in afternoon trade.

Brent crude was up $1.70 to $70.39 per barrel on the ICE Futures Europe exchange in London.

Gains were helped by new data from China that oil demand probably added 2.9 percent there in August from last year at the same time, and by a statement from Saudi Arabia’s oil minister, who said that demand for his country’s oil is up and the economy is growing.

In afternoon trade, Nymex October gasoline futures were up 3 cents to $1.78 per gallon while November heating oil was 5 cents higher to $1.84 per gallon and November natural gas traded even at $4.42 per million British thermal units.